If you have a property loss, submit your claim to the insurance company and they only reimburse you for the cost to reproduce your merchandise or product would you be mad? Would you expect to be reimbursed at the selling price instead? How would this impact your revenue and cash flow?
The standard property insurance policy will only pay for the cost to replace your product or merchandise after a loss, what is known as replacement cost valuation. There are methods to insure your product at the value at which you sell it but few insureds know this.
Find out more and some of the issues I see that can lead to being under-insured and paying too much for insurance in the video below.