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What is stock insurance?

What is stock insurance?

If you’re a market trader who handles stock, it’s likely that your goods will be at the very heart of your business.

In the unfortunate event that your stock becomes damaged, it would likely be very bad news. Understandably, protecting stock is a key concern for many traders. Despite this urgency, at Marketline we’re aware that many market traders aren’t certain of the best way to insure their stock.

That’s why we put together this guide all about stock insurance — which can help ensure your goods and your business are protected.

Below, we explain exactly what stock insurance is, what you need to know, and how to get covered.


What is stock insurance, and why do you need it?

Stock insurance is crucial for many types of traders and stallholders who handle goods.

This can include those working at street markets, outdoor events, exhibitions, shows and festivals.

If your stock or equipment is damaged from an accident, fire, flood or theft, your stock insurance will cover the cost to replace it. For example, if you sell pizza at a market and your collection of ingredients is damaged by an accident, you will be covered by your policy.

If your business relies on selling stock, it’s easy to see why having stock insurance could prove essential — as you’ll be able to get back to work without suffering significant financial loss, and without suffering excessive disruption to your schedule.


How much does stock insurance cost?

When it comes to the price you pay, there are multiple factors that determine the cost of your stock insurance. Such as:


  • The value of your stock
  • The quantity of your stock
  • The location and manner in which your stock is stored
  • Whether you work indoors or outdoors
  • The level of cover you purchase


How to calculate the value and quantity of your stock

Calculating the value of your stock can sometimes be a confusing element of applying for stock insurance (which is why it’s a good idea to use a specialist insurance adviser like us!).

When it comes to insuring your stock, you should first calculate its value. It’s important to consider what your stock is worth to you (specifically how much it would cost to replace) — and not the point-of-sale value to the customer. You could end up overinsured if you calculate it based on the sale price to the end customer.

Secondly, you should consider the highest quantity of stock you may have throughout your policy, and ensure you’re sufficiently covered for that amount. Remember that seasons will impact your levels of stock, so it’s best to gauge this on your busiest time of the year. There’s a danger of underinsurance if you underestimate how much stock you’ll have on hand for those especially busy periods.

Calculating the value and quantity correctly will help ensure you’re covered for what insurers call your ‘Maximum value at risk’ - the maximum amount of money you could lose if disaster strikes and your entire stock is lost, stolen or destroyed.


What does a stock insurance policy cover with Marketline?

At Marketline, we’re committed to catering for all different types of traders. That’s why we offer two variations of our stock insurance policy: one for indoor traders, and another for outdoor traders.

Our outdoor market stock and equipment insurance policy is designed for traders working at street markets, outdoor events, exhibitions, shows and festivals. It covers your stock whilst you are trading, or in transit to and from the market or event. Plus, if you use a trailer, we can protect it against accidental damage (including whilst being towed), fire and theft.

Our indoor market stock and equipment insurance policy is designed for traders who work at indoor markets, including kiosks in shopping centres, bus stations and high streets. It covers your stock whilst you are trading, and while stored in a unit overnight. Plus, we can provide cover for your kiosk or unit, as well as any buildings (including glass), and frozen food in the event of a freezer breakdown.

With both policies, we’re pleased to also insure your trading equipment, fixtures and fittings, and include business interruption (up to £75,000) and loss of money cover as standard.

Remember, minimum standards of security may apply.


How to buy stock insurance

At Marketline, we’re specialists in insuring market traders. Get in touch today on 0207 618 2929, or click here to arrange a call back, where you can specify the date and time you would like to be called back, and provide us with any other necessary information in the message box.

For more information, read our Stock Insurance FAQs




Maddy Harris

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