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.