E-commerce sellers rely on proper and secure inventory storage for the success of their business. But what if your inventory is damaged or stolen? Without adequate insurance protection in place, you may be out thousands of dollars in damaged and unsellable products. On top of that loss, you may have to spend more money to order new inventory to fill orders. Inventory storage insurance may offer financial protection.
What Is Inventory Storage Insurance?
Inventory storage insurance helps protect your inventory against covered losses and damages, including theft. While every policy varies, most provide financial reimbursement if a covered loss occurs.
How Much Does Inventory Storage Insurance Cost?
Inventory storage insurance policy rates vary, depending on the type of inventory you’re insuring, how much inventory you’re insuring and where you’re storing the inventory. Additionally, the level of coverage you select and your business’s claims history will also play a role in determining your policy rates.
Do I Need Inventory Storage Insurance?
There may not be state or federal requirements related to inventory storage insurance, but the warehouse or facility at which you store your inventory may require proof of insurance. This is because most warehouse insurance policies may not include coverage for third-party (your) inventory if it is damaged. Moreover, your fulfillment partners, suppliers, investors and potentially other insurers may require proof of inventory storage insurance.
In addition, purchasing inventory storage insurance can provide various benefits to e-commerce sellers. As explained previously, without proper insurance coverage, you may not be protected if your inventory is damaged or stolen. This could threaten your entire operation, depending on the value and size of your inventory. Some policies may cover the loss of turnover, which can help protect your overall business income.
Where Can I Learn More?
Without this type of insurance, you may be on your own if you experience loss, theft or damage to your inventory, which could threaten your operations. Contact the team at Wells Insurance, the e-commerce insurance specialists, to learn more about inventory storage insurance and how it may be right for your business.