Manufacturing companies have a heavy weight on their proverbial shoulders: not only do they have to keep their proprietary processes intact, source materials to use in their products, and make sure that their products make it to their customers, but they also have to worry about issues with their finished stock. There’s a lot that can go wrong when that stock is completed and sent out the door. Rather than pay for these issues out of the company’s bank accounts, there’s finished stock insurance.
Wondering why you may need one of these policies? Here are a few reasons to explore.
Your Products Could Be Damaged or Stolen
Once your products are completed, they are out of your control. Everything from a water leak at your warehouse or a fire at an offsite storage location can damage or destroy your finished products. When they’re in transit, they can be damaged in a truck accident or by someone mishandling the items while unloading them.
Theft is another issue. Although some products are bigger on the black market than others, there are markets for just about everything, making your finished stock something that may disappear from your warehouse or delivery trucks. The process after you discover that they’re missing can be lengthy and expensive.
Replacements Can Be Expensive
Speaking of pricey things, missing and damaged products obviously will need to be replaced. This requires you to use the supplies that you have on hand or buy new ones, fire up your machinery, and pay for your employees to do the work of making more products. However, unlike the standard items that you make that will head out when sold and add to your company’s bottom line, these are replacements, so you’ll actually lose money on them. Thankfully, your finished product insurance can help your business regain the money that it lost in the process.
It Keeps Your Manufacturing Line Moving
What happens when your business runs on close margins? Having your finished goods lost or sold can prevent your company from having enough money for more supplies and labor. You may not be able to simply fire up your manufacturing line again. Finished product insurance can really help here because it will provide the funds that you need in order to replace the missing or damaged products.
Choosing a Finished Stock Insurance Policy
There’s a lot that can go wrong once you finish your products and ship them en mass out the door. Since those products are your company’s livelihood, you could end up losing a lot of money and possibly going out of business if you don’t have the right insurance policy in place. If your business needs finished product insurance, you should reach out to your business insurance agent.
Have Questions? Contact Charlotte Insurance
Want to learn more about finished stock insurance for manufacturing companies? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.