When inventory changes seasonally, is there an easier way to manage the BPP limit? Simplifying the process for a prospect and reducing uninsured losses may help win the account.

For larger businesses, there is the Value Reporting form, which must be completed weekly, monthly, quarterly. Unless the insured has large enough fluctuations, the premium savings are not worth the extra work involved, not to mention penalties for late reporting.

For many manufacturers, distributors, and retailers, sometimes their inventory significantly increases. Do they have to insure for the higher limit all year? No. The simple answer is the Peak Season Limit of Insurance endorsement, ISO form CP 12 30. Examples of businesses that may need the endorsement because of increased inventory at expected times:

• toy store at Christmas
• florist at Valentine’s Day and Mother’s Day
• party supply store at Halloween and Independence Day

The form increases the limit for BPP, or other property types, for a scheduled period(s) of time. When this endorsement is on the policy, the limit is automatically increased when the period begins, and decreased when the period ends. The agent and insured don’t have to remember to make the increase and then later the decrease. The limits are correct, and errors are avoided.

Many preferred carriers have endorsements that provide a set increase, such as 25%. These can be useful, but can also have requirements before using the higher limit, or penalties. Be sure to read details on the carrier’s own form.