STOCKPILING OVER BREXIT FEARS? WHY [...].
STOCKPILING OVER BREXIT FEARS? WHY YOU NEED TO TELL YOUR BROKER With remaining uncertainty over Brexit, a recent survey by the Confederation of British Industry indicated that as many as 44% of businesses are stockpiling goods. While this practice may seem like a sensible tactic, stockpiling comes with risks of its own, including being under insured for the extra levels of stock being stored. We would recommend businesses consider the following guidance to ensure your stockpiling procedures don't result in disaster: A/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.
Aalso 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.
A/ 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, 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 Wilby today.
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|Publication:||Huddersfield Daily Examiner (Huddersfield, England)|
|Date:||Mar 14, 2019|
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