This is often applied to policies for businesses who hold stock, so it is very common in Wholesalers Insurance policies and other insurances, where the business stores stock.
It typically states that as the policyholder, you must keep all stock off the floor, by around 10 cm (although the distance can vary).
What a stillage Condition looks like
The stillage condition looks a lot like this:
Stillage Condition ( 10 centimetres )
It is a condition precedent to liability that if in relation to any Storm
Flood or Escape of Water claim you have failed to fulfil the following
condition you will lose your right to indemnity or payment for that claim
You must ensure that all Stock in Trade be kept on wooden pallets or metal racking so that such goods are at least 10 centimetres (4 inches) off the floor level.
Why is the Stillage Condition important?
The Stillage condition is an important part of your policy, because in the event of a flood, storm or escape of water depending on how the condition or warranty is worded, your insurers would not have to pay out for damage to items on the floor.
If your policy has a condition like this, your insurers want you to keep everything off the floor. If you don’t follow this stipulation, you could lose out if you suffer a flood or similar damage to any stock on the floor.
Can’t find the Stillage Condition?
If you can’t find the Stillage Condition in your policy documents, it may not be there.
It isn’t featured in every policy, but if it’s there you definitely want to know about it and the distance from the ground you need to keep your stock.
Free review of your insurance policies
Contact us today for a free and no-obligation review of your insurance policies.
As well as explaining any hidden terms and conditions of your cover, we may be able to negotiate more practical terms and conditions, improve your premium, the cover or both!
Evans Insurance Brokers –Insurance Brokers in Essex serving clients throughout the UK