Supply a column list, for all columns excluding the identity column. Supply the matching column list in the Select. This is a best practice anyway, and is something you should always be doing.

INSERT INTO  tblFinal_inspection (Column1, Column2 ... ColumnN)

 SELECT Column1, Column2 ... ColumnN FROM tblFinal_inspection Where lotnum = @lotnum;

In the above, replace "Column1, Column2 ... ColumnN" with every column in the table except the identity column