How should stock-in-sight be adjusted during an insurance claim?

Adjusting stock-in-sight during an insurance claim typically involves using a physical inventory because it provides the most accurate and reliable assessment of the actual goods available at the time of the claim. A physical inventory allows for a direct count and valuation of items currently held, ensuring that the adjustment reflects the true condition and amount of stock on hand, which is crucial for establishing the extent of loss covered by the insurance policy.

While estimating stock value or consulting historical sales data can be informative, these methods may not capture the current state of the inventory accurately. Similarly, relying on market trends might give a general sense of stock value but does not directly assess the specific inventory held by the business. Therefore, using a physical inventory is the most precise approach for determining the value of stock-in-sight and ensuring the claim accurately reflects the insured stock at the time of loss.