Insurance is an essential part of protecting business assets for companies in any industry and of any size. Many businesses fail to review their insurance coverage as they grow. This oversight puts businesses at risk for significant losses in the event of asset damage or loss.
Insurance is a proactive form of financial protection for a business. Different types of insurance protect assets from most types of losses, ensuring that a business can repair or replace equipment, buildings, inventory and get back to generating revenue.
The Right Level of Insurance Coverage
Insurance valuations provide business owners with the information needed to ensure the correct level of coverage. Many businesses are underinsured, potentially leaving the business owner without the funds to recover from damages or legal actions.
There are two methods commonly used to complete an insurance valuation. Actual cash value, also known as sound value, details the cost to replace assets after factoring in any depreciation the asset may have experience. Should a loss occur, insurance companies use this information, along with the age and condition of the asset at the time of the loss to calculate the insurance payout.
The other method for insurance valuation is known as the IRCN (insurance replacement cost new). This provides coverage to replace the existing damaged equipment or property with something of like quality and type. Unlike the actual cash value, any upgrades or modifications to the equipment or property are covered with IRCN.
Without a valuation or insurance appraisal process, business owners are more likely to find they are underinsured if a loss occurs.
To schedule an insurance valuation with the experts at Business Name, see us online. Details on our professionals and our services are available at Website URL.
