Reduce Your Insurance Costs


It is not unusual for a client to tell me “I don’t want to have too much insurance.” I don’t blame people for thinking that. Who would want to buy more insurance than they need? This question is often raised when covering the raw materials and inventory of a business.

In order to have the right amount of coverage in a worst-case scenario, a business should insure their raw materials and inventory at the maximum level they possess at any one time during the year. That way, if a total loss occurred on that date, the business would have an adequate level of coverage to pay the total loss. But, no one wants to pay the premium the rest of the year for an amount that only applies to a few months.

Brewery businesses often encounter this problem. Their inventory of ingredients that go into each batch of beer increases as production increases in the summer months. On a standard insurance policy, the amount of coverage you choose should be at this level. Fortunately, with the correct endorsements, your brewery does not have to carry these excessive limits. The first solution is to have your policy in reporting form. With this type of policy, the customer would send a monthly average inventory to their agent, and the premium would adjust based on the amounts reported. This is often tedious and easy to forget from month to month. That is why we like to add the “Peak Season” endorsement to our customers policies.

Peak Season coverage automatically increases the inventory coverage stated on the policy by 25% to account for seasonal increases that may occur. With this benefit, the amount of coverage can align with the actual average amount of raw materials and inventory of your business. If the amount should spike for up to three months during the year, the policy will automatically increase by 25%. This is an inexpensive coverage to add, requires no additional work on the part of the insured customer, and covers you in the event of a total loss during your peak season. Check your current policy today to make sure you have the proper coverage at the most affordable price.

To learn more about Peak Season endorsements, please contact Jason DeKuiper at 231.928.4005.


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