May 20, 2009 Specimen Plants, Plant Inventory, and Asset Management

Asset Tracking on Plant Inventory

Many people ask us:

 ”How do you value the plant inventory?  On cost or selling price?”

We provide coverage on a wholesale nursery plant replacement cost valuation.

For example; if a plant were purchased for $10 dollars and the grower held it for 2 years and sold it for $100 dollars, Live Asset would not pay a $100 dollar claim, because the $100 dollar amount includes profit. We do not insure lost profit on plant inventory.

However, we do pay 100% of the insured amount for “specimen plant items” on an agreed amount basis, when listed on the policy.

Specimen plant items are “one of a kind plant material” that can not be replaced with a commercially grown like, kind and quality replacement. Specimen plant status is determined by HMI when the inventory list is submitted as part of our application process.

If the Live Asset policy designates your inventory as “specimen plant status” we will pay 100% of the value on a structured payment with 55% upfront to cover debris removal, new inventory and installation; the balance paid in equal installments over the next 3 years; as long as the grower replaces the item with a new “replacement liner or vine”.

If you are unsure on how to properly manage your live assets and protect your plant inventory, feel free to contact your Live Asset broker.