Property Coverage Fluctuates With Inventory

Many businesses can pick an amount of inventory coverage at the beginning of the year and know that at any given time, their actual inventory values will be within a few dollars of that amount. This makes the choice easy; just pick an amount that will cover the most you’ll ever have on hand.

However, suppose your inventories vary widely from one month to another, depending on production, pricing, or marketing cycles. For example, a florist who specializes in having a large inventory of live flowers on hand for certain holidays might have very little inventory at other times of the year. Certain retailers might bring in a great deal of stock at the beginning of each sales cycle, and then sell it off gradually (with their merchandise on hand dropping steadily), only to restock and have their values shoot back up at the beginning of the next sales period.

Does your business inventory vary greatly over time? If so,  shouldn’t your Property insurance do the same? Otherwise, if you have a fixed amount of coverage, although your inventory values vary, there will be many times that your coverage will be out of sync with your needs. If your coverage is too low, a loss at a time of high inventory values can be devastating. On the other hand, a high fixed amount might mean that you’re paying for too much insurance during those periods when your inventory values are low.

Is there a way to provide adequate coverage at all times, yet with a cost structure that tracks the actual values you have at risk?

Yes! If your current policy doesn’t offer this valuable option, contact one of our Property insurance professionals today. If you have inventories that fluctuate, let us show you how a “value reporting form” can provide the coverage you need at all times.

Call us today and our Total Protection Team will be happy to help. 877-994-6787

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