Insurance Matters

Stock Insurance

When organising stock and contents insurance it is necessary to select the range of ‘perils’ which will be covered. It is standard to arrange either an ‘All Risks’ or a ‘Fire, Theft and Specified Perils’ policy.

In the latter case caution should be exercised to ensure that all required perils are included, in particular “Storm and Malicious Damage”. Locations can be specified as individual sites or by extending the cover to a broader area, typically ‘anywhere in the United Kingdom.’

When specifying locations, it is normal to include the storage premises and the individual sites where cover is required. Goods in Transit can be arranged as a separate section of the policy. If no site cover is arranged the hirer may be contracted to be responsible for the equipment, but there are three potential pitfalls with this. Firstly, the client may not have the necessary funds to replace the equipment. Secondly, the client may attempt to decline liability on the basis that the marquee was incorrectly erected. Thirdly, a client may rely on their household policy, without realising that generally the policy limits are insufficient and they often exclude movable property in the open.

For Marquee hire companies, restricting cover to the UK is normally the simplest method to choose. It is unnecessary to inform insurers of the location of each and every hire and an annual policy is normally substantially less expensive than a series of one off covers. However, care must be taken as many policies have limits on individual sites or a limit per marquee. CoverMarque has no such restrictions as it is recognised that when these specified limits are exceeded during the busiest summer periods, it is all too easy to overlook notifying insurers.

Whichever type of equipment insurance is chosen the ‘Sum insured’ will have to be declared at the inception of the policy. Equipment can be insured on an indemnity basis (second hand value) or on a Reinstatement basis (new for old). In the marquee industry, due to a relatively low availability of second hand equipment and a need to buy compatible replacement equipment, it is normally advisable to choose the reinstatement basis. When hiring in equipment, marquee companies normally find that they are conducted to be responsible for its loss or damage. Therefore, it may be prudent to include a ‘Goods in Trust’ figure in the sums insured calculation.

CoverMarque Ltd is authorised and regulated by the Financial Services Authority FRN: 310705
Registered Office: Larksborough Farm, Whitchurch, Hampshire, RG28 7PN; Company Registration Number: 480664
Managing Director: Nick Drew B.A. Hons (Dunelm)
Company Secretary: Professor Bridget Drew OBE BSC PHD C.Biol F.I.Biol F.R.A.g.s