COVID-19 has brought soaring demand and prices to the lumber industry, as people nationwide have begun renovating their homes or building new ones through the pandemic. According to MarketWatch, both lumber futures and lumber demand have doubled since the beginning of the pandemic. This sudden boost in demand can support growth within the lumber industry, but as lumber prices rise, so do inventory values for those who stock lumber. Many businesses who stock lumber are caught at the crossroads of higher demand and higher prices.
Properly insuring your inventory should always be a priority, since lumber businesses face threats from natural disasters, accidents, fires, and theft year-round. Now, with lumber inventory value so high, it has become especially important for lumber dealers to revise their policies. As prices and inventory values continue to rise, we recommend our policyholders review their stock now and review their insurance coverage to confirm it properly covers their entire inventory accurately.
To get the most out of your insurance, keep your broker and PLM apprised of changes to your business. Our first recommendation for our insureds would be to review their insurance coverage limits to match their higher-valued inventory. This is critical to ensure the business is fully covered in case of any damages to their inventory. Customers can reach out to their brokers or PLM representative to decide whether they need revised limits.
It can be difficult to efficiently keep track of business changes, changing inventory values and how those relate to your insurance coverage. For that reason, we offer a monthly stock reporting form, designed to keep us and our policyholders aware of any changes to their inventory value. Policyholders can use this risk management tool to list their current inventory and its values on the document, which PLM can then keep track of and help them revise as needed.
For more information, contact a PLM representative directly or call 1-800-752-1895. You can locate your local Business Development Representative at https://www.plmins.com/
