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Post by dottyhen on Jul 22, 2015 9:27:53 GMT
I need to renew my business insurance. I have a lot more items than I did last year when I was starting up in business and wondered how I am supposed to value my stock. Do you calculate the cost of materials or the price they would hopefully sell for? Obviously with felted items, the time it takes to produce an item bumps up the selling price a fair bit, (and therefore the value of stock if it is calculated this way). Does anyone know what I am supposed to do?
Jane
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Post by zed on Jul 22, 2015 10:45:53 GMT
What kind of stock? If it's supplies, I suppose you would calculate the cost of replacement, and I'd take that to mean a whole 100g of fibre if that's how it's sold, even if you only have 60g left, since you can't buy 60g.
For items for sale, I suppose it'd be the cost of reproducing them, so if you have priced an item at £50 it's assumed you've taken cost of supplies, time to make/profit etc in that. Whether you can also claim for the loss of an item, I don't know, maybe 'loss of earnings' while recreating stock is something for consideration as effectively you're using time to restock/replace too.
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Post by Shepherdess on Jul 22, 2015 12:02:24 GMT
I estimated the cost of the finished things and the replacement of supplies. the best thing to do is talk to your insurance person. They can tell you different ways of insuring it and what the costs are. Mine is a rider on the farm policy. it may be cheaper to have a rider on your house policy rather than a stand alone policy.
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Post by dottyhen on Jul 22, 2015 15:19:21 GMT
Thanks for your replies. Zed - It hadn't occurred to me about having to buy a complete 100g to replace each colour, although this does make it a lot easier to calculate than weighing the fibre I have. I've managed to sort it out. Although I had been worried that the premium would be huge as the amount of completed items I could sell (if anyone wanted to buy them!) is much higher than last time, in the end it didn't add much on. Good thought, Ann, but in the end I went for Direct Line's Home Business Insurance, it turned out less than it would have been to add the business stuff onto the home insurance and I also get public liability cover included.
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Post by Teri Berry on Jul 22, 2015 21:12:20 GMT
Sorry, this is probably a bit too late for Jane, but IFA membership now gives you public liability cover if you are based in the UK, it is cheaper than taking out a separate policy and comes with the magazine and access to a variety of workshops.
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Post by felicity on Jul 22, 2015 21:20:19 GMT
Sorry, this is probably a bit too late for Jane, but IFA membership now gives you public liability cover if you are based in the UK, it is cheaper than taking out a separate policy and comes with the magazine and access to a variety of workshops. It was the main reason I've joined!
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Post by zed on Jul 23, 2015 10:40:47 GMT
Glad you got it sorted
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