January 11, 2023

Stock Insurance | Protecting Your Stock From Damage

Stock Insurance | Protecting Your Stock From Damage



For many businesses, especially shops, warehouses, and factories, their stock is their most important asset. Whether it is raw materials, finished goods, or work-in-progress inventory, any damage to a company’s stock can land a heavy blow to its overall financial security.

Business owners and managers today have to protect their stock from a number of risks– fire, theft, riots, floods, storms are all pressing dangers that threaten stock-heavy enterprises on a daily basis.

Measures like installation of safety equipment, regular maintenance checks, and use of updated tools all help prevent the chance of any stock damage occurring at your facility, but they can only go so far. Some damage to your inventory is inevitable. And one way to ensure your business’s continued survival and growth despite these disasters is Stock Insurance!

Stock Insurance helps you recover the cost of your stock in case it is lost or damaged due to an unexpected event. This type of insurance can safeguard your inventory from both man-made and natural risks, providing you with enough funds to replace the damaged items and get your business running back to normal.

Stock Insurance can offer coverage at every stage of the production process, protecting every type of stock from sudden damage. This includes:

  • Raw materials and components
  • Work-in-progress and stock of unfinished goods
  • Finished goods that are ready for sale
  • Maintenance, repair, and operations goods / spare parts of machineries
  • Packing materials used during shipping or storage
  • Consumables, such as office supplies

Most businesses, especially those working in the manufacturing, wholesale, and retail industries, have some kind of stock being produced or stored at their premises. And any damage to these assets can derail their entire production line and cause significant dents in their revenue stream. If you manage any of the following businesses, it absolutely crucial for your to insure your stock:

  • Factories and manufacturing units
  • Shops, grocery stores, and retail outlets
  • Warehouses and storage facilities
  • Restaurants, hotels, and cafes
  • Gyms, beautify salons, and showrooms

Stock insurance works by offering you financial reimbursement proportionate to the cost of goods lost or damaged. This kind of coverage can be specifically found in Fire Insurance policies that also offer protection to other assets such as machinery, building, and furniture, along with stock.

Stock Insurance protects stock against a host of risks, such as:

  • Accidental fire or explosion
  • Theft or burglary
  • Damage during a riot or strike
  • Malicious damage caused by a third party
  • Natural disasters like floods, earthquakes, cyclones, and storms
  • Damage caused during collision

Stock Insurance can shield your goods from a range of hazards, however, there are some instances of damage that fall outside of the purview of this policy. In short, you will not be covered against the following perils:

  • Damage to stock in cold storage
  • Spoilage of stock during the manufacturing process
  • Damage caused during a heating or drying process, such as brazing, bonding, or forging of materials in furnaces
  • Any damage caused by radiation or related perils
  • Damage caused due to a war or similar risk
  • Damage caused by leakage of automatic sprinklers
  • Loss of any stock that has been missing or mislaid
  • Inventory shortages / shortages discovered during regular stock taking activity


Purchasing business insurance is no longer an expensive and tedious affair. The days of endless paperwork, constant back and forth with your insurance agent, and high premiums are long gone. With Verak, you can get your business protected against more than 15 common risks from the comfort of your home for a price as low as ₹1,500 for ₹10 Lakhs of stock.

All you have to do is say ‘Hi’ on WhatsApp or give us a call at +91 9076277062. Our insurance advisors will then collect some important details about your business, such as its location, type of stock, and Sum Insured. You will then get quotes from some of India’s leading insurance companies, including the likes of Oriental Insurance, United India Insurance, and ICICI Lombard Insurance, delivered to your WhatsApp.

Verak’s advisors will then guide you throughout the process of quote comparison, helping you choose the right policy for your budget and business needs. Once you are satisfied with the coverage and premium, you can easily make the payment via UPI, Net Banking, or Debit/Credit Card through our RazorPay portal.

And that’s not all. Verak’s 100% digital platform also allows you to make changes to your policy and file for a claim in just a few clicks. Our WhatsApp support team will be with you every step of the way!

To get started, submit your details here or call us +91 9076277062 today.

Further Reading

Machinery Breakdown Insurance | Coverage and Exclusions
How to reduce Business Insurance premiums

Opinions, conclusions and statements of intent expressed in this article are that of the author and Verak does not accept liability for the views expressed unless confirmed by an authorized representative of the Company independently of this communication.