- Adjust storage processes—At a glance, stockpiling increases the likelihood of materials and goods being stored in hazardous or unsafe conditions, seeing as the stock isn’t typically stored in those locations. With this in mind, it’s crucial to assess your stockpile storage space and procedures to ensure proper risk controls and make sure all health and safety standards have been met.
- Bolster security measures—Stockpiling can also increase the risk of theft, since your supply of goods will likely exceed distribution rates for an extended period and be located in a single storage area. As a result, be sure to implement proper security measures (eg guards, security cameras and restricted access barriers) to prevent break-ins and stolen or damaged stock.
- Alert your broker—Most importantly, stockpiling can cause major concerns with your insurance cover in the event of a claim. When stockpiling, it’s vital than you communicate with your broker to update your policy and increase your sums insured. Otherwise, your policy won’t be able to help cover your additional stock if you make a claim, leaving you with significant financial loss. You should also alert your broker whether Brexit stockpiling has caused you to buy or lease any new premises or expand trading to new, foreign markets, as these changes will impact your insurance.
In an era of drastically changing market conditions due to Brexit, Trade Credit Insurance can help. This cover protects against businesses not receiving payment for goods or services that they sell, including instances of commercial risk (when customers cannot pay invoices due to financial reasons) and political risk (when customers cannot pay due to factors out of their control, such as a currency shortage).
Trade credit insurance is available for businesses of all industries and sizes.
For additional guidance, contact ICB Group today.