In general, exterior construction companies in the Midwest are busier when the weather is warmer. Pool installation contractors can relate! It is exponentially harder to properly excavate a frozen site. It is even tougher to final grade the site with freezing weather conditions. Finally, most homeowners do not want to look at a tore up yard longer than necessary. Regardless of the busiest month, inventory insurance is always important.
Time for Preparation
As a pool contractor, we are not going to tell you something you do not already know here. In the winter months, you are utilizing this time to do other things…
- Catch up.
- Work new leads.
- Sign customers.
- Scope out potential jobs.
- Stock up your inventory for the upcoming installation season.
Focus on Peak Season
Let’s talk about just one of these items in particular…time of increase in inventory, also known as Peak Season.
When you see Peak Season, you may think of your busy time of year! You picture the sun is shining and installing pools. With regards to insurance coverage, Peak Season means when you have the largest amount of inventory on location. It is a customizable option built in the swimming pool installer insurance plans. Below we will touch on some of the basics on why we utilize this coverage to properly protect your business.
What do you have on hand?
Have you considered the extra inventory amounts in comparison to your business personal property coverage limits? The extra inventory during the winter could include pool heaters, fiberglass pools, chemicals, and additional materials. Usually, we see an average is calculated to cover the year. Unfortunately, in most cases, this actually causes a large gap in the policy.
Let’s look at an example. Say you typically keep $100,000 of inventory. Your business personal property coverage is set based on this. The good news is 8 out of the 12 months, you are likely fine. What happens when your inventory now includes 12 new pool heaters, 10 new covers and 8 new pools in preparation for upcoming installs? Your inventory now increases to $250,000! You immediately have a coverage gap of $150,000. We would hate to see you pay for these items out of your own pocket if they become damaged or destroyed. There is a simple and cost-effective way to cover these spikes in inventory.
Peak Season insurance coverage is great for the increased coverage limit at times of peak inventory. The cost of Peak Season coverage is also pro-rated for the time you need it. For example, if you need 3 months of the additional coverage, you would pay 25% of the business personal property premium rate. The other option would be to pay a full premium for your highest inventory value limit year-round. Essentially, you get the full limit of insurance you need on your goods for a fraction of the cost.
We look forward to working with you!
We are glad you found our agency. One of our pool insurance specialists is ready to meet you, understand your operation and find the best fit policy for you. Our goal is to protect what you do best as a pool contractor!