Stored inventory: prevention is your best insurance

Prevent water damage

Water is the leading cause of commercial insurance claims. Whether it’s infiltration, sewer backup or burst pipes, the losses can be significant. Here’s how to protect your inventory:

• Install a backwater valve in the building.
• Inspect your roof, exterior walls, and foundation regularly.
• Store merchandise off the basement floor...use elevated shelving.
• Place moisture detectors near your vulnerable inventory.

Closing shop for the winter?

Before locking up, shut off water supply lines, drain pipes and maintain minimal heating. Come spring, you’ll avoid unpleasant surprises and get back to business without a hitch.

Reduce fire risks

Fires often result from small oversights: faulty equipment, overloaded wires, or a forgotten cigarette. Reduce risks by being proactive:

• Have your electrical systems inspected regularly.
• Don’t allow smoking indoors.
• Keep inventory away from heat sources—heaters, light bulbs, welding tools, etc.
• Store hazardous materials like propane outside.

Be ready to respond to fire

Even if you’re well-prepared, fires can still happen. Train your team on emergency procedures and ensure fire protection equipment is always operational:

• Adequate number of smoke detectors
• Accessible and properly maintained fire extinguishers
• Sprinklers tailored to your storage layout
• A commercial fire alarm system connected to a central monitoring station

Pro tip: Use open-shelf units for elevated storage. This way, sprinkler water can reach lower levels more effectively.

Protect your merchandise against theft

Theft isn’t limited to nighttime break-ins. Unauthorized access or simple carelessness can also lead to losses.

Boost your security:

• Install an anti-theft system connected to a central monitoring station.
• Use surveillance cameras.
• Lock up your valuable merchandise.
• Limit the quantity of expensive items stored on site.

Don’t overlook internal theft

Our minds automatically go to external threats, but some thefts originate from the inside. Employees familiar with your routines can slowly divert goods without being detected. It’s often small, repeated acts that cause the most damage.

Counter them:

• Conduct random inventory checks to quickly spot suspicious activity.
• Limit the number of high-value items on site and keep details confidential.
• Screen staff thoroughly before hiring, including references.
• Include clear consequences for theft in your internal policies: sanctions, dismissal, etc.

Temperature-sensitive merchandise? Be prepared

If your business stores products sensitive to temperature changes, even a short power outage can cause major losses. 

• Check if your commercial insurance covers temperature-sensitive products. If not, be sure to add it.
• Here’s how to stay protected:
  Create an emergency plan with suppliers or a nearby business.
• Install a generator to maintain stable temperatures in the rooms.
• Use sensors to detect abnormal changes in refrigeration or climate control systems.

What about a power outage?

• Ask your staff to keep units closed to preserve cold and prevent spoilage.
• Protect cold-sensitive items (plants, chemicals, etc.) by storing them indoors at a stable temperature.

Prevention and commercial insurance, a winning combo

Prevention reduces the likelihood of losses, while commercial insurance helps cushion the blows. Together, they ensure business continuity and protect your investments.

Talk to your broker today to assess your risks and tailor your coverage to your business reality.