We get this questions asked almost every time we work on a winery policy. " If I have a covered wine loss how do you decide what you are going to pay?" The answer varies by policy, but most have the selling price endorsement.
What is the selling price endorsement. Well it is almost like it sounds. If you are selling a case of wine for $360.00 retail and all your sales are retail with no discounts, that is the price you get. The truth of the matter is that you don't sell every case at full retail so the insurer has to factor in the discounts offered and come up with the average retail price. Throw in the wholesale sales and you get paid on the average that you actually get for your cases. Still a fair number and better than a wholesale price or some arbitrary number.
If the wine is in the tank or barrels, of course the insurer will deduct for the cost of putting the wine in the bottles. After all you will not have that expense.
The claim if it is large will usually require some accounting work, but all the ones we have had have been seemless. The number is right there and the company wants to get it right.
A problem can arise for the new winery if it does not have a sales history. It makes adjusting the claim a bit subjective. The wine is in the tank,it is not bottled and a price list may not even be printed. This one is going to take longer for the company to pay as the numbers are going to be harder to establish. It can and will be done however.
Take the time to look at your books and find out what that gold in the tank is realy worth. It will probably surprise you.