Commercial insurance can help business owners in West Bloomfield, MI easily replace their inventory if they lose it due to a covered peril, such as a fire or covered natural disaster. How much inventory it replaces may be another story.

Food Spoilage

Most policies have lower limits for food spoilage. It’s important for restaurant owners to determine how much it would cost to replace all the food onsite and work with an agent at Phil Klein Insurance Group to ensure you have the necessary coverage.

Coverage Limits

Coverage for other inventory will also be subject to coverage limits. Your limit usually depends on the policy and the limit you choose when you purchase the policy. Businesses have different needs, so this usually varies per policy. Representatives can work with you to help you understand your coverage limits and how they will work if your inventory needs to be replaced.

Valuation Method

You should also ask your agent how they value your inventory if it needs to be replaced. Many companies will consider the replacement value, which is the cost to purchase new inventory. Others consider the actual cash value, which is how much the value of the item is, including depreciation. Some items, such as electronics, may depreciate more over time than others, such as socks.

There are several variables to consider when determining if you have adequate coverage. Unfortunately, many of these are circumstantial or depend on your policy. That’s why you need to call the representatives here at Phil Klein Insurance Group to talk about your business’s needs. Our agents will make sure you have the right policy for your company. We’re currently serving the West Bloomfield, MI area.