One of the largest components of your company’s value is its inventory. This is also one of the biggest risk factors to your company.
If you lost your inventory of products or goods, could you operate your business? Would it take time to replace these items? Or, would it be too expensive to replace the lost inventory leading to the shuttering of the company? The good news is the property coverage of your business insurance plan may be able to cover your losses.
Examine Your Existing Plan First
If you have lost some or all your inventory, turn to your business insurance policy. This is the perfect way to learn more about what type of protection you have and what may not be available to you.
Your business insurance will list the specific types of coverage you have. It may specify the type of inventory covered, the amount covered, and the types of risks of loss covered. It’s important to have a plan that provides enough financial protection to you for any risks.
Contact Your Insurance Agent to File a Claim
The claim you file with your business insurance agent needs to document several things. It needs to state what you lost, the amount of that product lost, and the value of the lost items. How will you know this information?
- Use your list of assets to help you to determine the amount of inventory you had on hand.
- Be sure to use receipts to verify the value of the items you have in the location.
- Use any other documentation you have of specific products or materials to clarify the coverage.
Take a few minutes to look at the covered perils on your business insurance plan. Most often, policies cover losses related to fire, theft, vandalism, weather, and equipment breakdown. However, some policies have exclusions and most have limits. You should know these in advance.
Filing a claim for inventory loss does not have to be complex. However, the more information and verification you provide, the more likely it is that your insurance will honor your claim. This is also a good time to examine your existing business insurance plan to make sure it offers enough protection for your specific needs and the amount of inventory you have on hand.
We’ve got you covered. Call First Independent at (586) 247-2220 for a fast, free insurance policy quote.