Does Your Business Need Selling Price Insurance Coverage?

manufacturer insurance

Businesses that manufacture product can benefit from selling price insurance. Many manufacturer insurance policies only cover the replacement value of damaged stock. Selling price insurance covers the true value of the stock, or the selling price, including profit and commission. Selling price insurance can cover the actual cash value of the product, not the base cost. Since the base price of your finished stock might be much less than the actual sale price, your company can reclaim the full value, which might help to speed the manufacture and replacement of that stock. Finished goods that are ready to be sold, and then damaged, would be covered at their full cost.

Since a basic property insurance policy only covers replacement value of the stock, your company might face delays and financial losses in replacing damaged finished stock. Selling price insurance can cover some of the time lost when your stock is damaged. When encountering an expensive loss, it might be too much of a financial risk to be covered for only the replacement cost. Some packaged policies include this with a limit to coverage, but an endorsement without a coverage limit can protect the full value of the stock. A qualified insurance agent can help tailor a manufacturer insurance policy with selling price insurance to fit the needs of your company.