Peak stock values by location
Review this carefully when evaluating the insurance program and preparing a submission.
Commercial Property & Inventory Insurance for Distributors
For a distributor, inventory is often the balance sheet sitting on racks. Limits, valuation, peak seasons and catastrophe exposure deserve more attention than simply copying last year’s numbers.
What to Think About
The policy should match how the business actually operates.
Coverage needs depend on the products, contracts, property values, transportation arrangements and services involved. These are some of the issues worth reviewing.
Peak inventoryA limit based on average stock can be inadequate during seasonal or purchasing peaks.
ValuationReplacement cost, actual cash value and selling-price considerations can produce very different outcomes.
Multiple locationsInventory may move among warehouses, overflow storage and temporary locations.
Protection systemsSprinklers, alarms, commodity classification and storage height can materially affect underwriting.
Submission Checklist
Information that helps tell the story to underwriters.
Better information can help carriers understand the risk instead of making assumptions from a class code alone.
Building, racking and equipment values
Review this carefully when evaluating the insurance program and preparing a submission.
Seasonal fluctuations
Review this carefully when evaluating the insurance program and preparing a submission.
Temporary and off-site storage
Review this carefully when evaluating the insurance program and preparing a submission.
Related Distribution Topics
One exposure rarely stands alone.
Property, products, transit, customer goods and business income often overlap in a wholesale or distribution account.
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