Small business owners who have an inventory know that one of the main duties they have is to keep track of it! Failure to do so may result in losing thousands of dollars in property. Business insurance coverage is a necessity. 

This business inventory has to be managed. If managed correctly, they should have the exact amount of property for sale at the proper time. If the stock is managed well, it lowers business costs as excess inventory is decreased and sales are increased. Good inventory management keeps track of your inventory list every day. 

Your inventory may consist of the following: 

1. Items for sale at your location, online, or at other storefronts. 
2. Business equipment such as laptops, monitors, phones, copiers, printers, desks, chairs, lighting, pictures, and other items.

If there is a covered loss on your business insurance policy, whether sales inventory or business equipment, the inventory gives you the information that may prevent future losses. 

There are several ways you can track your inventory: 

• Written inventory: It’s agonizing to do as it has to be detailed, but it is reliable and the most popular way to do it. It shows the business owner what is and isn’t selling, and tracks trends, theft losses, and growth areas. It can be kept in the cloud on a document or a drive. 
• Receipts: Keep all your receipts in a secure location if there is an insurance claim. They should be current and old inventory receipts should be filed. 
• Photos: Photos of all of your inventory are always helpful when filing a claim. Label the photos and load them onto the cloud so they cannot be lost or destroyed. 
• Video: Smartphones or video cameras can be used to do a detailed video recording of model numbers and quantities, on-site and off-site. You can do a narration of the items so that claim representatives have the details. 
• Software: There is inventory management software that can set up a system that tracks your inventory. Some programs can be expensive but may pay for themselves many times over should a large loss occur. ***

Once you have decided on the inventory method(s) that you want to do so that your inventory is listed and accessible, follow these steps to get started:

1. Declutter old items: Get rid of unused or outdated items in your inventory. You may have items that have expired or are no longer needed. 
2. Count items: Simple way to make sure that all of your inventory items are listed. You may need to do separate categories for certain items. 
3. Label items: Label all containers or items. 
4. Missing items: Once you have counted and labeled them, you can see what may not match your current inventory. See if there are missing items. 
5. Track them: During inventories, create a method of tracking orders and shipments.
6. Streamline it: Based on your inventory, future inventories now give you a sense of needed items. 

If an emergency occurs and you lose your inventory in a covered loss, you have the comfort of knowing that your items are listed and that the insurance claims adjuster has the information needed to reimburse your business. The time and effort to do a thorough inventory and to keep it updated will pay off.

Lindquist Insurance can help. We offer business insurance for startups and established businesses. Contact our licensed and experienced insurance agents at (301) 694-0008 for a free consultation. 

We serve the Frederick, MD, and Annapolis, MD areas. 

*** For more on business inventory software visit the Adam Enfroy website. The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.