Commercial Property
Inventory Coverage
Commercial property coverage for inventory protects your stock, raw materials, and finished goods against fire, theft, and other covered losses. For product-based businesses, inventory often represents the largest insurable asset — and underinsuring it creates significant financial exposure when a loss occurs.
Commercial Property
What You Need to Know About Inventory Coverage
Stock and Merchandise
Covers finished goods held for sale, raw materials held for production, and work-in-process. Coverage is based on the value at time of loss — meaning your policy limits need to account for seasonal peaks and growth in inventory value.
Seasonal Fluctuation
Businesses with significant seasonal inventory swings — retail, agriculture, contractors stocking up for busy seasons — need to ensure their policy limits reflect peak inventory values, not year-round averages.
Inventory at Multiple Locations
Property policies list specific covered locations. Inventory stored at warehouses, satellite facilities, or in transit may not be automatically covered under a primary location policy. Off-premises coverage or warehouse legal liability may be needed.