When producing in the US these were standard riders on our commercial policy:

1) $x dollars/incident covered for goods in transit (ie on a truck from a contractor to our warehouse)
2) $X dollars for work in process at third party facilities if the facility was designated on the policy.
3) Raw materials and finished goods in the warehouse were covered under standard hazard insurance with a brand protection and purchase order rider.

Here’s how it changed when we moved offshore:

1) You need to buy a separate policy to cover inbound international shipments and the coverage amount/incident is limited to what is declared for customs purposes. Any commercial broker should be able to write this policy.
2 & 3) Typical commercial coverage for work in process and for raw materials held in offshore facilities are not covered by your US policy. I had to buy a policy written by a Dominican Republic Insurer to cover this. It was more expensive than insurance in the US, but you can do due diligence on the insurer and have peace of mind.

Keep the brand protection and purchase order rider on your US policy. This is very important. For instance say you have $300,000 (at sales price) of product that is damaged by smoke. So its time to settle with the insurance company. If you have a purchase order rider, the insurance company will pay you the amount that the product would have sold on the purchase order and not the product cost. If you have a brand protection rider the insurance company won’t take the damaged merchandise and liquidate it in the wrong channels, they are required to destroy the damaged inventory.

I hope this helps.

The broker needs to explain to the Underwriter that your policy is not a standard product (i.e. renter’s insurance for $25K/$100K for $60/mo). To do that effectively, the broker really needs to “get it”.

I took my broker on a tour through my basement, pointing out and explaining that my electrical requirements were different. I also explained that I had to collaborate with the electrician to ensure code was achieved and my needs were met. I made her touch the cutting table, the cutting equipment, machines, reference materials, etc.

It’s amazing the power of touch. I think she gets that my livelihood is on the line in the event of catastrophe. In my case, I was able to “up” my homeowner’s coverage – not that every state will permit that – for about $120 more per month. The rider I have does not cover work stoppage, though.

I’m simply not big enough nor have enough consistent volume behind me for carriers to rate that. Work stoppage policies will likely need to come from a different carrier who provides General Liability, Errors & Omissions, Product Liability and other Business-related policies.