How Do You Claim Damaged Business Inventory?
Inventory is valued from your own records — purchase invoices, inventory reports, and cost of goods sold — and most commercial policies pay replacement cost for stock rather than the retail price you would have charged. The claim usually turns on whether you can prove what was on hand at the moment of loss, so inventory management records are worth more than photographs alone. Call 516-410-0164 for a free claim review.
Proving What You Had
Carriers reconstruct your inventory from documents. Point-of-sale reports, purchase orders, receiving logs, and monthly inventory counts create a defensible starting figure, and bank and supplier records corroborate it. Businesses without those records get low offers because the adjuster has to estimate conservatively.
Photograph and video everything before disposal, and keep damaged goods available for inspection whenever health rules allow. If public health requires immediate disposal, document the order.
Valuation Disputes to Expect
Two arguments recur. First, whether damaged stock is salvageable — insurers push discounted resale where contamination, water exposure, or smoke odor makes goods unsellable and exposes you to liability. Second, whether finished goods are valued at cost or selling price, which depends on whether your policy carries a selling-price provision.
Key Takeaways
- Stock is typically valued at your cost, not retail price
- Perpetual inventory records are the strongest evidence
- Selling-price endorsements can raise recovery on finished goods
- Partial contamination often justifies full replacement
Licensed in New York
Kevin Godfrey, License #PA-1156995 · 22+ years experience · Fees 6–12% (NY cap 12.5%)
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