Stock Insurance Policy
Total Cover
100% Claim Settlement
No
Documentation
Reasonable
Premium
Total Cover
100% Claim Settlement
No
Documentation
Reasonable
Premium
Our Proud Partners - Beemawala
Client Testimonials
3 months ago
Great experience with Beemawala . The customer service was top-notch, and the process was smooth and efficient. Highly recommend them for their professionalism and helpfulness!
4 months ago
One of best Policy providers I came across. Highly recommended, superb customer experience, Soft spoken and solutions oriented costumer support . ⭐️⭐️⭐️⭐️⭐️
9 months ago
They guided me through the intricacies of various insurance options, ensuring I fully understood each policy's coverage and benefits. Their transparency and willingness to address all my concerns instilled a sense of trust and confidence in their services.
7 months ago
Good service whenever we call to them they give positive response i have a claim they support and my claim got settled
7 months ago
Brilliant place for all types of insurance. Always connected with every claim settlement.. Hassle free.. Kudos to beemawala..
What is Stock Insurance Policy ?
Example : let’s explore how Mr. Rajesh, a medical stockist with a stock worth 80 lakhs, benefited from his comprehensive stock insurance policy when a fire broke out at his business premises on a Sunday.
Scenario: On a Sunday, when the business was closed, a fire started in Mr. Rajesh’s medical stockist shop. The fire quickly spread, causing significant damage to his stock of medicines, equipment, and fixtures. This sudden and unexpected event could have resulted in a massive financial setback for Mr. Rajesh.
How the Comprehensive Stock Insurance Policy Helped Mr. Rajesh:
1. Coverage for Fire Damage: Mr. Rajesh had wisely opted for a comprehensive stock insurance policy, which included coverage for fire damage. When the fire occurred, the policy came into play.
2. Assessment and Documentation: After ensuring everyone’s safety and reporting the incident to the authorities, Mr. Rajesh contacted his insurance provider. They guided him through the claims process, helping him assess the extent of the damage and documenting the loss.
3. Claim Settlement: Since Mr. Rajesh had diligently maintained records of his stock and its value, he was able to provide the necessary documentation to his insurer. The insurance company conducted a thorough evaluation of the damage.
4. Financial Compensation: Once the assessment was complete, the insurance company compensated Mr. Rajesh for the value of the damaged stock. This included the cost of medicines, equipment, and fixtures destroyed by the fire.
5. Business Continuity: With the financial compensation received from the insurance claim, Mr. Rajesh was able to replenish his stock, replace damaged fixtures, and restore his business premises. This ensured minimal disruption to his operations and prevented a substantial financial loss.
6. Peace of Mind: Having a comprehensive stock insurance policy gave Mr. Rajesh peace of mind, knowing that he could recover from such an unforeseen event without depleting his savings or facing financial ruin. In this example, Mr. Rajesh’s decision to invest in a comprehensive stock insurance policy protected his business from a significant financial setback due to the fire. It allowed him to swiftly recover and resume operations, demonstrating the importance of having the right insurance coverage tailored to the specific risks associated with one’s business.
Coverages of Stock Insurance Policy
Fire and Allied Perils
This is the primary coverage, protecting your stock against damages caused by fire, lightning, explosion, implosion, aircraft damage, riot, strike, malicious damage, storm, cyclone, typhoon, flood, inundation, and more.
Burglary and Theft
Coverage against losses due to theft or burglary, which can include forcible entry or exit from the premises.
Riot and Strike Damage
Coverage for losses arising from damages during riots or strikes.
Leakage or Contamination
If your stock includes liquids or perishable goods, coverage for leakage, contamination, or spoilage due to accidental causes.
Damage in Transit
If your stock is in transit, this covers damages caused by accidents or unforeseen events during transportation.
Terrorism Coverage
Protection against losses due to acts of terrorism, which may not be included in standard coverage.
Seasonal Increase
Some policies offer coverage for seasonal fluctuations in stock levels, ensuring you’re adequately covered during peak times.
Deterioration of Stock
This add-on extends coverage to stock in transit, ensuring protection for goods while they’re on the move.
Cost of Removal
Coverage for the cost of removing debris or damaged stock from the premises.
Public Authority Clause
Protection for losses caused by orders of a public authority, such as a government directive to destroy contaminated stock.
Contingent Business Interruption
If damage to your stock leads to a disruption in your business operations, this coverage compensates for the financial losses suffered during the interruption.
Professional Fees
Reimbursement of professional fees incurred for assessing and quantifying the loss.
Stock in Trade
Coverage extends to stock in trade, raw materials, and finished goods.
Goods Held in Trust
Protection for goods held in trust or on commission.
Stock at Various Locations
If you have stock stored at multiple locations, coverage can be extended to all these places.
Additional Add-ons of Stock Insurance Policy
Business Interruption Coverage
This add-on compensates for the income lost during the downtime caused by damage to your stock. It helps cover ongoing expenses like salaries, rent, and utilities, even when your business is temporarily closed.
Earthquake Coverage
Similar to flood coverage, this add-on protects your stock in case of damage caused by earthquakes or other seismic events.
Contamination Coverage
For businesses dealing with food or pharmaceuticals, this coverage safeguards against losses resulting from contamination or tampering, which may not be included in standard policies.
Equipment Breakdown Coverage
If your stock relies on specialized machinery or equipment, this add-on covers losses due to the breakdown of these essential assets.
Cyber Insurance
In today’s digital age, this coverage helps protect your business against cyberattacks, data breaches, and loss of sensitive information that could impact your stock and operations.
Seasonal Variations Coverage
Ideal for businesses with seasonal fluctuations in stock levels, this add-on adjusts your coverage to match the changing inventory.
Pollution Liability Coverage
If your stock includes hazardous materials, this coverage protects you from liabilities associated with pollution and environmental damages.
Inland Marine Coverage
This add-on extends coverage to stock in transit, ensuring protection for goods while they’re on the move.
Employee Theft Coverage
Protects your stock from losses due to theft or dishonest actions by employees.
Accounts Receivable Coverage
If your stock includes accounts receivable, this add-on covers losses in case they become uncollectible due to a covered event.
Valuable Papers and Records Coverage
Protects important documents related to your stock, such as invoices and contracts, from damage or loss.
Goods in Cold Storage Coverage
Ideal for businesses with cold storage facilities, this add-on covers losses due to spoilage caused by equipment breakdowns or power outages.
Employee Cover
It give coverages to the employee and help in provide in case of accident or any fatal misfortune . The amount is paid by the insurance company on the behalf of the insured/ employeer .
Factors Determining the Premium of Stock Insurance Policy
- The premium for a Stock Insurance Policy is determined by various factors, which assess the level of risk your business faces. Here are the key factors that influence the premium.
Nature of Stock
The type and value of the stock you want to insure are primary factors. High-value or high-risk items typically lead to higher premiums.
Stock Quantity
The total quantity of stock you have in your inventory directly affects the premium. Larger quantities may result in higher premiums.
Stock Location
The location of your stock matters. If your stock is stored in an area prone to natural disasters or theft, the premium will be higher.
Security Measures
The security measures you have in place, such as alarms, surveillance, and access controls, can impact the premium. Enhanced security measures may lead to lower costs.
Stock Handling Practices
Your methods for handling and storing stock are considered. Safe and secure storage practices can help lower the premium.
Business History
The history of your business, including past claims and losses, affects the premium. Businesses with a history of claims may pay higher premiums.
Business Type
The industry you operate in can influence the premium. Some industries are considered riskier than others, impacting the cost.
Coverage Amount
The higher the coverage amount you choose, the more you’ll pay in premiums. Balancing coverage with affordability is key.
Deductible
The deductible is the amount you’re willing to pay out of pocket before the insurance kicks in. Higher deductibles generally lead to lower premiums.
Location of Business
The location of your business premises, including its susceptibility to natural disasters, crime rates, and fire protection services, affects premiums.
Policy Add-Ons
Any additional coverage or add-ons you include in your policy will impact the premium. More extensive coverage will lead to higher costs.
Claims History
A history of frequent claims or high-value claims can result in higher premiums, as it indicates a higher level of risk.
Business Size
The size of your business, including its annual revenue and employee count, can play a role in premium calculation.
Credit History
In some cases, insurers consider the credit history of the business when determining premiums.
Discounts
Some insurers offer discounts for various factors, such as bundling multiple policies or implementing safety measures.
Major Differences Between Godown Insurance and Stock Insurance Policy ?
| Aspect | Godown Insurance | Stock Insurance Policy |
|---|---|---|
Coverage |
Covers the physical structure of the godown, including building and its contents. |
Specifically covers the value of the stock, merchandise, or inventory stored within the godown. |
Nature of Insurance
|
Considered a type of property insurance. |
A specialized form of property insurance. |
Focus
|
Emphasizes protection for the godown’s structure and property within it. |
Focuses on safeguarding the monetary value of the goods or stock stored in the godown. |
Coverage Scope |
Provides coverage against risks like fire, theft, natural disasters, vandalism, etc., affecting the godown structure. |
Protects against perils such as fire, theft, damage during transit, and other risks that could damage or destroy the stock. |
Policyholder
|
Typically owned by the owner or operator of the godown or warehouse. |
Purchased by businesses involved in storing goods, manufacturers, wholesalers, retailers, etc. |
Premium Factors |
Premium calculation factors include godown location, construction, security, and more. |
Premium factors are based on the nature, quantity, and value of the stock, security measures, location, and other stock-related factors. |
Claim Scenario Example |
In case of a fire that damages the godown building and its contents, a godown insurance policy would cover both structural repairs and stock replacement. |
If there’s a fire, the stock insurance policy would cover the value of the stock destroyed by the fire, but not the physical structure of the godown. |
Customization |
Can often be customized to include additional coverages like burglary, earthquake, flood, and more. |
Can be customized to cover goods in transit, deterioration of stock, and other specific risks associated with the stock. |
Common Use Cases |
Suitable for businesses that own or operate warehouses, storage facilities, or godowns. |
Applicable to businesses with significant inventory or stock, such as retailers, manufacturers, and distributors. |
Legal Requirement |
Not typically a legal requirement, but may be necessary for risk management. |
Generally not legally mandated, but may be required by business partners or lenders. |
Policy Duration |
Offers various policy terms, typically ranging from one year to several years. |
Policies are usually annual, with options for renewal. |
Complementary Coverage |
Often combined with stock insurance to provide comprehensive coverage for businesses that both own the premises and store inventory. |
Can be paired with property insurance or business interruption insurance to create a broader risk protection plan. |
How to Settle Stock Insurance Policy Claim
Notification
As soon as you discover any loss or damage to your insured stock, it’s essential to notify your insurance company or agent promptly.
Documentation
Prepare and gather all the required documents to support your claim. These documents may include
Claim Form
Complete the claim form provided by your insurance company. Ensure all details are accurate and comprehensive.
Proof of Loss
Provide evidence of the loss or damage. This can include photographs, videos, inventory records, invoices, receipts, and any other documentation that validates the value and condition of the stock before the loss occurred.
Police Report
If the loss is due to theft, burglary, or vandalism, file a police report and obtain a copy to submit with your claim.
Loss Assessment
The insurance company will assign an adjuster to assess the extent of the loss or damage. The adjuster will evaluate the documentation you provide, inspect the damaged stock if necessary, and determine the value of the loss.
Claim Settlement
Once the assessment is complete, the insurance company will calculate the compensation you are entitled to based on your policy terms and the assessment results. You will receive a formal claim settlement offer detailing the amount and the terms of payment.
Acceptance or Negotiation
Review the claim settlement offer carefully. If you agree with the offer, you can accept it by signing the necessary documents. If you believe the offer is insufficient, you have the right to negotiate with the insurance company. Provide any additional documentation or evidence that supports your position and work with the adjuster to reach a fair settlement.
Claim Payment
Upon mutual agreement, the insurance company will process your claim payment. This may be a lump sum or installments, depending on your policy terms.
Resolution
After receiving the claim payment, you can begin replacing or repairing the damaged stock to resume your business operations. Ensure that you maintain records of all expenses related to the loss, as some policies may cover these costs.
Exclusions of Stock Insurance Policy
War and Terrorism
Damage or loss caused by war, acts of war, warlike operations, terrorism, or acts of terrorism may be excluded.
Nuclear Damage
Damage or loss caused by nuclear reactions, nuclear radiation, or radioactive contamination is typically excluded.
Gradual Deterioration
Damage due to gradual deterioration, wear and tear, or inherent vice of the stock items may not be covered.
Consequential Loss
Some policies exclude coverage for consequential losses, such as loss of market value, loss of profits, or other financial losses resulting from stock damage.
Illegal Activities
Loss or damage resulting from illegal activities, including stock used for illegal purposes, may not be covered.
Unexplained Loss
If you cannot provide reasonable evidence of the cause of loss, the claim might be denied.
Government Actions
Loss or damage due to government actions, such as confiscation or seizure of the stock, might be excluded.
Inventory Errors
Errors in inventory accounting or discrepancies between recorded inventory and actual stock levels may not be covered.
Negligence
Losses caused by your negligence or failure to take reasonable precautions to protect your stock may be excluded.
Employee Dishonesty
Losses due to dishonest acts or theft by your employees may not be covered unless you have an Employee Dishonesty coverage endorsement.
Stock Held in Trust
Stock held in trust for others or stock not owned by the insured entity might be excluded.
Unauthorized Locations
Stock located at premises not listed in the policy or outside the specified coverage territory may not be covered.
Documents Required for Claim Settlement under Stock Insurance Policy
In case of Theft Claim:
Claim Form
Begin by filling out the claim form provided by your insurance company. This form serves as your formal request for claim settlement.
Policy Documents
Submit a copy of your Stock Insurance Policy, including the policy schedule and any endorsements or add-ons, to establish your coverage details.
Police Report
File a formal police report immediately after discovering the theft. This report should detail the circumstances of the theft, including the date, time, location, items stolen, and any relevant information about potential suspects.
Proof of Loss
Prepare a detailed statement of loss or proof of loss, which typically includes a list of stolen stock items, their quantities, unit values, and the total value of the loss.
Inventory Records
Provide inventory records, stock ledgers, or any documentation that demonstrates the existence and quantity of the stolen stock before the theft occurred.
Invoices and Receipts
Include original invoices, purchase receipts, or supplier invoices for the stolen stock items to establish their value.
Photographic Evidence
If available, present photographs of the stolen stock items and any evidence of forced entry or damage caused during the theft.
Witness Statements
If there were witnesses to the theft or individuals who can provide relevant information, gather their statements.
Security Measures
Provide information about the security measures in place at the time of the theft, such as alarms, surveillance systems, or security personnel.
Financial Records
Include financial statements, profit and loss statements, and any other financial documents that help assess the impact of the theft on your business.
Other Supporting Documents
Depending on the circumstances, additional documents may be required. Your insurance provider will guide you on specific requirements.
Documents Required for Claim Settlement under Stock Insurance Policy
In case of Fire Claim
Claim Form
Begin by filling out the claim form provided by your insurance company. This form serves as your formal request for claim settlement.
Policy Documents
Submit a copy of your Stock Insurance Policy, including the policy schedule and any endorsements or add-ons, to establish your coverage details.
Fire Department Report
Obtain an official fire department report detailing the cause, extent, and circumstances of the fire. This report is crucial for validating your claim.
Proof of Loss
Prepare a detailed statement of loss or proof of loss, which typically includes a list of stolen stock items, their quantities, unit values, and the total value of the loss.
Inventory Records
Provide inventory records, stock ledgers, or any documentation that demonstrates the existence and quantity of the stolen stock before the theft occurred.
Invoices and Receipts
Include original invoices, purchase receipts, or supplier invoices for the stolen stock items to establish their value.
Photographic Evidence
If available, present photographs of the stolen stock items and any evidence of forced entry or damage caused during the theft.
Witness Statements
If there were witnesses to the theft or individuals who can provide relevant information, gather their statements.
Financial Records
Include financial statements, profit and loss statements, and any other financial documents that help assess the impact of the theft on your business.
Repair Estimates
If repairs or restoration are necessary, obtain written estimates from contractors or repair professionals.
Police Report
If the fire resulted from criminal activity, such as arson, include a copy of the police report.
Other Supporting Documents
Depending on the circumstances, additional documents may be required. Your insurance provider will guide you on specific requirements.
Contact Information for Claim Settlement: related to Stock Insurance Policy
If Policy Obtained through Agent/Broker
Claims are the reason we get a car insurance in the first place! Therefore, ensure the claim process of your desired car insurance is smooth and doesn’t take too long. When you’re in trouble, the last thing you want is, to spend all your time and energy in just filing a claim!
If Policy Obtained Directly from Insurance Company
Claim Settlements are basically getting your compensations done right. Claims being such an important part of a car insurance, check for your desired insurer’s claim settlement ratio so that you’re assured that no matter what, your claims will be settled!
Claim Contact Information for Policy from Beemawala.com
If you have taken the policy from Beemawala.com, please use the following contact details to register your claim.
- Phone: +91-9654259715
- Email: services@beemawala.com
Frequently Asked Questions: (FAQs) on Stock Insurance Policy
– Stock Insurance Policy is a type of insurance that provides coverage for loss or damage to a business’s stock or inventory due to specific perils like fire, theft, or natural disasters.
– Stock Insurance helps protect your business from financial losses resulting from damage or loss of inventory, ensuring business continuity.
– Stock Insurance typically covers perils like fire, theft, flood, vandalism, accidental damage, and more, as specified in the policy.
– Yes, if flood damage is a covered peril in your policy, losses due to flooding can be claimed.
– Theft by employees may be covered, but it depends on the policy terms. Some policies require evidence of forced entry.
– Yes, you can adjust your Stock Insurance coverage to account for seasonal variations in stock levels.
– You typically need a list of stock items, their values, inventory records, and policy application form.
– Premiums are calculated based on factors like the value of stock, location, security measures, and the type of coverage selected.
– Underinsurance occurs when your stock’s insured value is less than its actual value, potentially leading to reduced claim payouts.
– Yes, it’s essential to notify your insurer of any significant changes in stock levels to ensure adequate coverage.
– Business interruption coverage is usually separate from Stock Insurance but can be added as an endorsement.
– A waiting period is the initial period during which specific perils may not be covered; it varies by policy.
– Perishable stock items may be covered, but policies may have specific terms and conditions.
– Yes, Stock Insurance is suitable for various business types, including retail and wholesale.
– An ‘all risk’ policy covers most perils unless explicitly excluded, offering comprehensive protection.
– Report the loss to your insurer immediately and follow their instructions for initiating a claim.
– A loss adjuster assesses the extent of the loss, helping determine claim validity and settlement amounts.
– You can usually cancel your policy at any time, but terms and conditions vary.
– Maintain updated stock records, conduct regular stock audits, and document any changes.
– Claim settlement times vary, depending on the complexity of the claim and the insurer’s processes. It’s essential to work closely with your insurer during the claims process for timely resolution.
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