Skip to content


Does Your Demand Exceed Supply?

Text Size: - +

Large, multi-national businesses with intercontinental supply chains are not the only businesses in our current lean, delivery-on-demand economy. Are there times in your business when demand exceeds supplies? Or times when a certain job or task requires more than your normal operations and equipment can handle?

It is not uncommon for a business to reach above and beyond its normal capacity to solidify an account or secure a large contract. For example, consider a local printing operation that does a majority of its business providing duplication and assembly services. A key client requests a particularly large project, involving significantly higher volume and a tighter deadline than normal. If the printer can deliver, he secures future business as well as retains a valued client. If the printer fails to deliver, or pleads inability even to pursue the project, both the client and future business could go to a competitor. In order to secure the contract, the printer must create additional duplication and assembly capacity on short notice.

Since such equipment can be too expensive for the printer to purchase outright, particularly for a short-term project, his best solution may be to rent or lease the additional equipment. This typically requires lease agreements and rental contracts that contain clauses requiring the printer to carry adequate insurance on the equipment while under contract. Yet depending on the contract and the type of equipment and its use, such coverage may not be automatic under the printer’s current commercial property policy.

If your business occasionally depends upon leasing equipment and supplies, either short or long term, be certain your insurance coverage is in place and adequate to the task.

©2013 Selective Ins. Group, Inc. (Branchville, NJ). "Selective" insurers include Selective Ins. Co. of America, Selective Ins. Co. of New England, Selective Ins. Co. of N.Y., Selective Ins. Co. of South Carolina, Selective Ins. Co. of the Southeast, Selective Way Ins. Co., Selective Cas. Ins. Co, Selective Fire and Cas. Ins. Co and Selective Auto Ins. Co. of N.J. Insurers and products available vary by jurisdiction.