In business, everything owned by the business is an asset. These assets may be critical to the operation of the business, such as the actual building itself, or they may be inventories of parts and components or finished product waiting to ship.
Regardless of what the asset may be, there is a cost if the asset is lost. This could be loss due to fire, theft, storms, vandalism, or other types of occurrences. As a business owner, understanding what your current insurance coverage is and what you actually require in the event of a claim is a critical consideration.
The Business Insurance Valuation
An insurance valuation should be done by a professional with training and expertise in assessing the cost and replacement value of all assets of the business. This allows you to correct any insurance coverage deficits while also avoiding paying unnecessary premiums.
Generally, companies should consider completing an insurance valuation if there are any changes in the business. This includes adding equipment, increasing inventory on hand, or making upgrades or renovations to the building, processes, or systems in place in the business.
It is also necessary to consider the type of methods used to arrive at the value provided by the independent specialist. Consider options, compare replacement costs or actual cash value, and choose the option that is correct for your business and your budget.
Keep in mind, insurance is not an area of any business to cut corners or costs. Having the correct amount and type of insurance provides protection in the event of any damage or loss, allowing your business to get back up and running.
Let the insurance valuation experts at B. Riley Financial Inc. help you to feel confident your assets are protected. To find out more, visit us at brileyfin.com.