13 October 2025

Stock sums insured

By Malcolm Stewart Head of HKJ Commercial
Illustration of several sailboats and motorboats docked at a marina with

Why regular reviews are essential for boat dealers

For businesses in the boat sales market, accurate stock sums insured are at the heart of effective protection. Your vessel fleet represents one of your most valuable assets, and getting the sums insured right ensures your business is covered properly – not paying too much, and not leaving gaps in cover.

The importance of regular reviews

The value of vessel stock naturally changes throughout the year. New boats arrive, sales are completed, and demonstrations take place. Because of this, a static annual figure for your stock sum insured can quickly become outdated. That’s why we recommend reviewing your stock regularly to ensure your insurance reflects your actual position.

At HKJC, we offer flexible review options. For larger clients, we can make quarterly adjustments to keep sums insured accurate in line with their fleet changes. For others, we often conduct six-month reviews as a practical balance. Both approaches help ensure that the premiums you pay are fair and directly aligned with the real risk your business faces.

 

Cover tailored to your needs

The aim is straightforward: to provide the right level of cover for the stock you hold, at the right premium. By reviewing sums insured regularly, you can feel confident that you won’t be overpaying for cover you don’t need, nor underinsured when an issue arises.

It’s also important to remember that this cover doesn’t stop at your storage yard or showroom. It extends to trials and demonstrations too—critical activities for any boat sales business. With the correct cover in place, you can rest assured knowing that, should the unexpected happen during a demonstration or trial, your business is properly protected.

 

The hidden factor: currency fluctuations

Another consideration for many dealers is currency. If you import vessels—say from the EU—volatile exchange rates can significantly affect replacement costs. A boat valued at today’s exchange rate may end up costing considerably more to replace tomorrow. That means even if your sums insured look right on paper, you could still face a shortfall if a claim arises.

To help with this, our HKJC policy can include an optional extension that takes currency fluctuations into account This ensures that in the event of a claim, you’re not left underinsured simply because the market moved against you.

 

Why it pays to stay proactive

Regular stock reviews aren’t just an administrative task—they’re a key part of risk management for boat sales businesses. By keeping sums insured accurate, you safeguard your ability to recover swiftly from any incident, avoid disputes at claim stage, and ensure peace of mind that your premiums reflect your true exposure.

Our expert team is here to help you navigate these reviews with ease, ensuring your insurance remains a reliable safety net as your business evolves.

If you’d like to discuss quarterly or six-monthly stock reviews for your business, please contact us.

Call us today on
01905 930 760
Enquire here

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