Storing business stock at home - insurance issues??

Chipydip

Hi all,

I am looking to become self employed, retailing goods, and will be needing to store business stock at home (rented), from where i will run the business.

I have been into a number of high street insurers to discuss my needs, only to be told they will not cover business stock, other than home office IT equipment.

Does anyone know of a good insurer to use in my situation? All i need is basic contents insurance, plus cover for the business stock (£1-2k @ replacement cost).

TIA. All advice greatly appreciated.

inmypocketnottheirs

You may also find that your landlord has put a clause in your lease obviating running a business from the property. Also there will be a Council Tax issue.

You may also run in to problems on the above if you have any nosey neighbours. This particularly comes a problem if you have a lot of deliveries and collections, or a lot of customers calling at the premises.

Maybe a better idea to use a storage facility like https://www.bigyellow.co.uk where you may find their insurance might cover you.

HTH

dunstonh

Whilst most insurers have no issues at all with clerical roles from home, they certainly do with stock and visitors.

You will need to request permission from the Landlord as his mortgage provider may not allow it and his buildings insurance provider may not allow it.

You should get permission from the Council as there will be deliveries and they may not allow it.

Chipydip

Thanks for the assistance pocket & dunston.

To clarify, the business will never have customers visiting the premises - it shall be online trade only. The house will only be used for delivery of stocks, storage of stocks, and the packaging of orders.


I would like to use a storage company as I could certainly do with more space that I currently have, however, cannot afford to make such a commitment just yet

Astaroth

You will have to check with the council to see what their rules are on property use... as others have said it may mean you have to pay business rates on the property rather than council tax (needless to say, it is much higher generally) and also on your lease as most landlords prohibit you running a business (as mentioned because of the issues with mortgages).

Your best bet will be to go to a broker and look into commercial insurance. If you are selling goods then you many also need to consider things like public liability or product insurance and they will be able to advise you on this and also cover items such as business interuption which wouldnt be covered by a home insurance policy even if they were willing to turn a blind eye to the stock.

Chipydip

Thanks again for your help.

I think ill have a chat with the landlord to see what his point of view is. If he's ok with it i'll contact the council for their opinions, if not i'll take the self storage route.

Does anyone have any self storage recommendations/tips? From what i have read, all rates seem to be included within advertised hire costs, and i guess it would make offsetting premises expenses clearer. Is there anytihn i should look for/avoid?

Chipy.

Astaroth

If it is for a business then clearly you must check the easy of access and also insurance on the items in storage - the cost of losing the stock to a fire, for example, is going to include reputational damage & additional postage costs for yourself in addition to the pure cost of replacing the stock due to unforfilled orders.

Depending on what you are selling it may also be a consideration to look at the drop shipping option to avoid the need for holding stock yourself.