There are numerous risks inventory businesses face. From theft to severe weather damage, your business can experience a wide variety of inventory damage.
Read on to learn three recent claim examples from our insured dealers and how you can protect your business against similar claims.
Inventory Claim Examples: Partial Theft
The claim: A manufactured home dealer had their lot broken into. Thieves stole appliances from the units, including refrigerators, ovens, washers and dryers and more.
Protecting against theft:
- Make lighting upgrades to provide better illumination across your lots.
- Install gates, concrete and/or natural barricades for additional protection.
- Install cameras and security systems.
- Educate employees on your theft policy.
- Keep accurate inventory records.
Inventory Claim Examples: Tree Damage
The claim: A severe thunderstorm produced high winds and heavy rain, causing a large tree to fall upon and damage several RVs.
Protecting against damage:
- Avoid storing inventory under large trees. Trim overhanging branches where possible.
- To prevent flood damage to inventory, ensure there is a positive grading to direct water away from structures and inventory. Use natural landscaping and native plantings to improve drainage and prevent soil erosion.
- Make lot improvements such as better drainage, paved lots and wider aisles.
- Consider adding hail canopies or carports.
Inventory Claim Examples: Improper Installation
The claim: The set-up company hired by a manufactured housing dealer was responsible for setting a modular home on its foundation. The company was supposed to use three straps to move the home but used only two. The home was dropped, resulting in a total loss.
Protecting against human error:
- Hire trusted and knowledgeable contractors.
- Go over required equipment for all inventory.
- Require all contractors to provide certificates of insurance.
Protection Against Common Inventory Claim Examples
These are just three examples of claims inventory businesses can face. Even with risk prevention and following best practices, inventory can still be damaged and stolen.
That’s why your business needs inventory insurance to protect against the costs of damage caused by fire, flood, hail, wind theft, collision and more.
Ensure your organization is fully protected with the Inventory insurance from Lockton Affinity.