Brexit: ABI urges firms to check insurance cover for bolstered inventories

The Association of British Insurers (ABI) is urging companies that have bolstered inventories of goods and raw materials ahead of Brexit to check that they remain fully insured. The association is concerned that firms that are said to be "stockpiling" may have overlooked the possible insurance implications and is urging them to check the terms and conditions of their commercial cover and, if needed, speak to their insurer or insurance adviser to ensure they have sufficient cover in place.

There will usually be a limit on cover for stock on the premises under commercial contents policies. While there may be cover for temporary fluctuations, firms should check that any additional stock can be covered by increasing the sums insured. If transporting extra stock, companies should also check commercial motor or goods-in-transit policies.

For companies opting to temporarily store additional stock or raw materials off-site in a warehouse, their own commercial policy and that of the warehouse firm should also be checked.

The ABI’s head of general insurance policy, Mark Shepherd says: "Many firms have been taking steps they consider necessary, such as stockpiling, to minimise the disruption of any possible no-deal Brexit. In doing so it is vital not to overlook any possible insurance implications. We urge firms preparing for Brexit to follow our advice to make sure they remain adequately covered, and to seek advice from their insurer or insurance adviser if in any doubt.”

The ABI's warning comes four months after risk advisers at Marsh warned retailers and manufacturers to check their trade credit insurance fits with Brexit-related contingency plans.

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