Commercial Insurance Inventory Basics

Commercial property insurance includes contents coverage for your business inventory. But how do you effectively create and manage a content inventory? Armorcrest Insurance Services offers our El Centro, CA customers a quick guide to help you get started. 


  • Start with a walkthrough. Make a note of everything you find. Inventory apps make this easier. Some are free, but the best come with a cost. 
  • There are three primary categories for business content. Categorize your inventory.
    • Inventory (what you sell to customers) 
    • Equipment (what you use to create your products)
    • Business Contents (terminals, furniture, and office equipment)
  • Take photos, record videos, and save receipts whenever you acquire new items. 
  • Once your inventory is created, maintain it by adding items to the list as they come in. 

Determine Value

When estimating the replacement value for items that fluctuate throughout the year, base it on your highest inventory month, never your lowest. Consider any renovations or improvements you’ve made to a building you rent. Ensure they are listed in your inventory. 

Understand the difference between replacement cost coverage (which pays out the value to replace with new items) and actual cash value coverage (which pays out the cost at current value, including depreciation). Actual cash value will have lower premiums, but you’ll need to make up the difference in the event of a loss. 


Make sure you keep a backup off-site. If you use a digital app, many of them allow you to store backups in the cloud. 


Review and update your content inventory seasonally. The more accurate it is, the better protected you’ll be during a loss. 

Armorcrest Insurance Services wants our El Centro, CA to be prepared. If you have questions about commercial insurance, call today to get answers from our knowledgeable and friendly staff.