Monthly Archives: December 2016

Peak Season Endorsement – Fluctuating Inventory

Hannah’s Retail Store does 70% of their sales from Thanksgiving through Christmas Eve. This means that they must stock up on inventory during the last two months of the year, to prepare for the increased sales. From January through October, they have $50,000 in inventory. November and December, inventory is closer to $150,000.

Should they pay for $150,000 in insurance coverage for the whole year? No. Is there some magical way that they only pay for the increased insurance during the time they need? Yes!

The “Peak Season Limit of Insurance” Endorsement (ISO Form: CP 12 30) increases the policyholders business personal property limit for specified periods to take care of seasonal increases in value.

Peak Season Endorsement - CP 12 30

CP1230 – Peak Season Endorsement

“Full Coverage” Auto Insurance

The term “full coverage” when referring to the insurance on your vehicle is very common. However, it is not a technical term. Full coverage can be misleading, as there are so many different coverage options on an auto insurance policy. When it comes to liability, how do you determine if you are fully covered?

For the most part “full coverage” is referring to physical damage on the auto insurance policy. This is the coverage that insures your vehicle for both comprehensive and collision damage. What? Lets break them down:

Comprehensive: Per IRMI comprehensive is the coverage under an automobile physical damage policy insuring against loss or damage resulting from any cause, except those specifically precluded. It covers losses such as fire, theft, windstorm, flood, and vandalism, but not loss by collision or upset.

Collision: Per IRMI collision is a form of automobile insurance that provides for reimbursement for loss to a covered automobile due to its colliding with another vehicle or object or the overturn of the automobile. This covers only damage to the automobile itself as “auto” is defined in the policy.