I recently was at the local Westlake, Ohio hardware store looking for a new smoke box for my grill. I couldn’t help but notice the area that was filled with grills and grilling equipment two weeks ago had been converted over to snowblowers and winter maintenance items. OUCH! (Read more)

Of course, this made me think about insurance and the peak season or seasonal increase endorsement that can be added to your commercial package policy or your businessowner’s insurance. Many businesses see an increase in demand for their goods during a certain time of the year and may have more, or more expensive, stock in their store. This increase in value may mean that a company’s business personal property values are not correctly contemplating these exposures at that particular time and could be underinsured at the time of a loss.

To properly manage this change in inventory, businesses can use a peak season endorsement. The peak season limit of insurance endorsement used in the standard commercial package policy “provides differing amounts of insurance for selected periods during the policy period as indicated by specific dates shown in the endorsement.”  In the business owner’s policy the business personal property limit seasonal increase provides a 25% increase (unless otherwise indicated) if you have maintained proper levels of insurance for the previous 12-month period.

The benefit of the peak season endorsement lets an insured operate throughout the year without having to notify their Independent Insurance Agent. This would generate an endorsement that may modify monthly payments and create additional transactions for a busy business owner. The endorsement also provides peace mind for the business owner so they know their business personal property is properly insured if there is a loss.

Each policy is different and the terms discussed in this article are a general description of the endorsements described. So, before you renew your commercial insurance policy, contact your Trusted Choice Insurance Agent at Richey-Barrett Insurance.

Cook, Mary Ann “Commercial Property Risk Management and Insurance” The Institute’s First Edition Page 4.9