Manufacturing companies have a lot to worry about. Not only do they need to keep their assembly lines moving and all of their equipment in good, running condition, but they have to ensure that their employees are getting things done safely. These worries don’t stop once the items are made and packaged. Those finished goods need to be stored, shipped, and delivered to whichever company ordered them, and there’s plenty of things that can go wrong in this part of the process.
So, what can you do to protect your business? Let’s take a look at why finished stock insurance is a sound investment.
What Is Finished Stock Insurance?
As the name implies, finished stock insurances provides protection for your manufactured goods from the time that they’re completed until they leave your warehouse on a truck. While you more than likely have commercial property insurance on your warehouse and its contents, that often isn’t enough to cover the costs of both repairs and new stock. In other cases, your stock won’t be covered at all, depending on the circumstances. No matter what, you need to have finished stock insurance, just in case.
What Situations Does Finished Stock Insurance Cover?
In order to truly understand the importance of finished stock insurance, you need to know the circumstances in which it provides coverage. Fortunately, it covers quite a bit.
Items are Damaged in Your Warehouse
There are many ways in which your finished stock can be damaged just by sitting there, waiting to go out the door. For example, if your warehouse is flooded or damaged in a rain or windstorm, ruining products at the same time, your finished stock insurance will pay for replacement goods. Similar situations, like a truck or forklift running into your stock, are other ways in which it can be damaged before shipment. These damaged items will need to be replaced on your company’s dime unless you have the right insurance policy.
Theft of Products
Whether people break into your warehouse at night and escape with some of your products or your employees decide that they deserve a five-finger discount, it’s easy to see how theft can become a problem. When your stock is stolen, you have to make it all over again, and it’s hard to recoup the costs when it becomes a consistent problem. Thankfully, your finished stock insurance coverage can help prevent your company from losing money while your security systems are being completed.
Vandalism
Finally, there’s vandalism. People breaking into your warehouse and destroying things before leaving or painting over them in a typical fashion leave your products unsellable. Again, you don’t want to have to pay for replacement items out of pocket, so your finished stock insurance will help. You just need to make sure that you have enough coverage.
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.