Commercial property insurance teams use standardized side-by-side comparison documents to reconcile inventory valuation discrepancies for active commercial policyholders filing stock damage or loss claims. These documents align manufacturer selling price (MSP) endorsement terms, which define carrier-covered base costs for replaced inventory, with current retail inventory valuations that reflect marked-up in-store or e-commerce sales pricing for active stock. Pulling a side-by-side table as part of your commercial property claim file folder eliminates back-and-forth between your operations team, insurance broker, and carrier adjuster during the claims adjudication process, and reduces the risk of claim delays due to missing or inconsistent valuation documentation. Margin Desk offers this reference framework to help you organize supporting documentation before you submit a formal claim package, with no binding impact on coverage determinations made by your carrier.
| SKU Number | Base MSP Per Unit (Endorsement Listed) | Adjusted Retail Per Unit (Active Stock) | Eligible For Coverage | Coverage Gap Per Unit | Footnote Reference |
|---|---|---|---|---|---|
| #78923 | $12.75 | $24.99 | Yes | $12.24 | N/A |
| #45619 | $28.20 | $52.50 | Yes | $24.30 | N/A |
| #12378 | $7.10 | $15.99 | Partial | $12.44 | 1 |
| #98745 | $36.80 | $0.00 | No | $0.00 | 2 |
| #65432 | $19.45 | $38.90 | Yes | $19.45 | N/A |
| **Total (Eligible SKUs Only)** | **$97.15** | **$152.38** | **N/A** | **$68.43** | **N/A** |
*Table Footnotes: 1. Partial coverage applies per obsolete stock rider: 50% of listed MSP is covered for this 120-day old overstock SKU. 2. SKU formally discontinued by manufacturer 120 days prior to loss event, no coverage applies per base MSP endorsement terms.*
Leftmost table column lists base manufacturer selling price entries per unique SKU
Every entry in this column is pulled directly from the active MSP endorsement attached to your commercial property policy declarations page, with no manual adjustments to account for subsequent price changes, bulk purchase discounts, or supply chain cost fluctuations that occurred after your last policy renewal. Each unique SKU is listed individually, with no combined line items for product groups or bundled SKUs, to ensure 1:1 matching with your physical inventory counts taken at the time of the loss event. When compiling this column, cross-reference every listed MSP value with paid purchase invoices stored in your accounts payable folder to confirm that the carrier’s listed MSP matches the actual per-unit cost you paid the manufacturer for the most recent shipment of each SKU. If you identify discrepancies between the endorsement’s listed MSP and your paid invoice amounts, flag those SKUs with a colored sticky note in your claim file, and notify your licensed insurance broker immediately to resolve the mismatch before you submit your claim package. For SKUs added to your inventory after your last policy renewal, attach a copy of the manufacturer’s official price list for that SKU to your table to support updated MSP values.
Printed table schedule lists adjusted retail inventory valuations for active stock
This column includes the current, active per-unit retail price for each SKU, calculated as the pre-tax price you charge end customers, minus any site-wide promotions, category-specific discounts, or planned seasonal markdowns that were active on the exact date of the loss event. For SKUs sold across multiple channels (in-store, e-commerce, third-party marketplaces) with varying price points, use the 30-day weighted average selling price across all channels to calculate a single accurate retail value, and attach a copy of your point-of-sale (POS) system’s sales history report for those SKUs as supporting documentation. Exclude any out-of-stock SKUs, pre-order SKUs, or SKUs not held in your physical inventory location at the time of the loss event from this column, to avoid inflating your total retail inventory valuation. All values in this column should be printed directly from your inventory management system, not manually entered, to reduce the risk of human error that could trigger a carrier audit of your claim.
Embedded table footnote clarifies policy exclusion carveouts for obsolete stock items
Standard MSP endorsements exclude coverage for obsolete, discontinued, or overstocked SKUs held in inventory for longer than the threshold specified in your policy (typically 90 to 180 days, depending on your industry), unless you have purchased an optional obsolete stock rider that carves out partial or full coverage for these items. The embedded footnotes in your table should list every excluded or partially covered SKU, the specific reason for exclusion, the applicable coverage percentage (if any), and a cross-reference to the exact policy section or rider that governs coverage for that SKU. Illustrative example: a SKU for a discontinued small kitchen appliance held in inventory for 120 days may be eligible for 50% of the listed MSP value if you added a seasonal overstock rider to your policy six months prior to the loss event, while a SKU discontinued 12 months prior will have no coverage eligibility. Cross-reference all footnote entries with your policy document to confirm exclusion terms are applied correctly, and attach a copy of your inventory turnover report to your claim file to support the obsolescence status of flagged SKUs.
Bottom table summary box displays calculated coverage gap values for all listed inventory
The summary box at the bottom of the table aggregates values for all eligible SKUs (excluding fully excluded obsolete stock) to calculate three key totals: total covered MSP value for all eligible stock, total adjusted retail value for all eligible stock, and the total coverage gap between the two values. The coverage gap represents the out-of-pocket cost your business will incur to replace lost or damaged stock at current retail markup rates, if you do not have additional replacement cost coverage that extends beyond the base MSP endorsement terms. You can use this total gap value to document deductible amounts that apply to your current claim, or to inform your coverage negotiations during your next policy renewal to reduce future out-of-pocket risk. Retain a printed copy of this summary box in both your claim file and your annual business risk assessment folder, to track valuation trends and coverage gaps across multiple policy terms.
Attached table form documents formal policyholder agreement to listed valuation terms
Once you have verified all SKU entries, MSP values, retail values, exclusion footnotes, and summary calculations are accurate, you will sign and date the attached table form, and provide signed copies to your insurance broker and carrier adjuster as part of your formal claim submission. This signed form serves as a formal record of your acknowledgement of the listed valuation terms and exclusion rules, and prevents post-adjudication disputes over covered amounts for eligible inventory. If you disagree with any values listed on the form, do not sign it until you have resolved the discrepancy with your broker and carrier representative, and all revised values are documented in writing and attached to your claim file. Retain a signed copy of the form in your commercial property claim file for a minimum of seven years, per standard federal and state business record retention requirements for insurance claims.
Print a copy of the reference table, cross-reference all entries with your policy endorsement and POS inventory records, then share the verified document with your licensed insurance broker to include in your commercial property claim submission.