If you operate a seasonal business or a business with significantly higher inventories at set times of the year, a peak season endorsement is an important consideration. Your personal property limit, including inventory, will remain constant throughout the year. However, adding a peak season endorsement allows you to increase that limit to a higher amount during specific times of the year.
Who needs a peak season endorsement?
While a peak season endorsement is appropriate for businesses in various industries and salutations, the classic example is the retailer specializing in Christmas supplies and decorations. Inventory in October, November, and December will generally be much higher than during other months.
Without this coverage, you would need to set a personal property limit high enough for your busy season in order to avoid being underinsured. This could lead to overpaying for coverage since your actual exposure would be less than that limit during the non-peak season months.
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With it, however, you can select a higher limit specifically for October thru December. This allows you to maintain adequate insurance while avoiding having to set an artificially high limit and overpay throughout the entire year. The same scenario could apply to a manufacturer that supplies products to the Christmas store.
Dig Deeper: Looking to learn more about key commercial policies and endorsements like this? Check out Which Commercial Insurance Policy Does My Business Need? on the Central blog.
Which peak season endorsement is right for my business?
Some commercial insurance policies may include a built-in coverage extension for peak season coverage. Central’s Premier and Premier Plus Property coverage extension forms automatically increase the personal property limit by 25% for seasonal increases as long as the average monthly value for the 12 months to the loss doesn’t exceed the personal property limit shown on the policy.
If your business has predictable inventory fluctuations, talk to your independent insurance agent about including the peak season endorsement on your commercial insurance policy.
Need help finding an agent? Start your search here.