Why goods in transit insurance and stock insurance can be important for tradesmen

A self-employed builder on a building site looking at an iPad.

Being self-employed, in any business sector, comes with a multitude of risks that full-time employees don’t have to worry about.

Goods in transit insurance

This type of insurance protection is usually available as an addition to a tradesman insurance policy. The policy will cover goods against loss or damage while in transit from one place to another.

This insurance can be taken out for goods transported in your own vehicle, or on your behalf by a third-party carrier.

Goods in transit insurance will provide cover for:

• Theft whilst in transit.
• Damage caused by an accident during transit.
• Loss during transit.
• Damage caused during transit.

Why could goods in transit insurance be important for trades?

If, for example, you run a small electrical supplies business, you may deliver orders to your local customers. If you were unfortunate enough to be involved in a crash, or your van is stolen while you have stopped for a break or to fill up with petrol, then your lost, damaged or stolen goods and tools would be covered. This can also include damage as a result of a collision.

Without good in transit insurance you could be liable for all the costs of replacing the goods and your tools.

Stock insurance

This business insurance policy covers the cost of replacing your stock if any of it is lost, stolen or damaged and is typically available as an extension to a business contents insurance policy.

Why could stock insurance be beneficial to tradesmen?

The cost of the premium will depend on the value of the stock you hold. Any claims settlement will be based on the stock price of any items claimed for, not the retail price.

Not every trades professional will hold stock, so the policy extension isn’t beneficial to everyone. But some trades do hold stock and trades materials onsite, such as a carpenter.

A carpenter will likely hold trades materials including various cuts of wood, screws, nuts and bolts as stock for commissions they receive, such as for building bespoke items of furniture. They will likely store wood onsite in their workshop, which obviously creates a fire hazard and any stock held could be completely destroyed in a blaze.

Another example is that you could be a trades supplier, such as a small electrical supplies business or plumbing supplies business. In which case you will hold stock onsite for both walk-in customers and pre-orders.

A stock insurance policy extension will protect the value of the standard stock your business deals with on a daily basis. If you hold high-value stock of any kind, then your policy premium will reflect that. Your insurance provider may also request that you improve your onsite security measures as a condition of cover.

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