Last year, we shared three claim examples that real inventory dealers faced, showing the variety of risks inventory businesses can experience.

The variety of risks – and claims – continues. Read on to learn about three new claim examples from our insured dealers and how you can protect your business against similar claims.


Inventory Dealer Claim Examples: Weather Damage

The claim: Before a manufactured home was fully sealed together, a summer rainstorm came up, heavily damaging the home and resulting in a $100,000 claim.

Protecting against damage:

  • Any unfinished projects should be sealed in Tyvek or other housewrap.
  • Avoid storing inventory under large trees. Trim overhanging branches where possible.
  • To prevent flood damage to inventory, ensure there is a positive grading to direct water away from structures and inventory. Use natural landscaping and native plantings to improve drainage and prevent soil erosion.
  • Make lot improvements such as better drainage, paved lots and wider aisles.
  • Consider adding hail canopies or carports.


Inventory Dealer Claim Examples: Customer-induced damaged

The claim: A customer browsing the lot got distracted and crashed into an RV, totaling the unit.

Protecting against human error:

  • Install parking barriers and make other lot improvements.
  • Consider natural barricades around the lot such as ditches, landscaping and bushes.
  • Mark specific spaces for employees and customers to park away from your inventory.
  • Provide helpful, lawful signage to protect right-of-way and pedestrians.


Inventory Dealer Claim Examples: Total Theft and Appliance Theft

The claims: A manufactured home dealer had their lot broken into. Thieves stole three total units, amounting to more than $300,000 in claim costs.

Another dealer had several appliances stolen from their units, including refrigerators, ovens, washers and dryers and more.

Protecting against theft:

  • Make lighting upgrades to provide better illumination across your lots.
  • Install gates, concrete and/or natural barricades for additional protection.
  • Install cameras and security systems.
  • Educate employees on your theft policy.
  • Keep accurate inventory records.


Protection Against Common Inventory Dealer Claim Examples

These are just three examples of risks and claims inventory dealers can face.

Your business needs inventory insurance to protect against the costs of damage caused by fire, flood, hail, wind theft, collision and more. Ensure your organization is fully protected with the Inventory insurance from Lockton Affinity.