Insurance is designed to provide your business with protection in the event of some type of damage. This damage can come in the form of physical damage, such as fire, wind, theft, or even vandalism to the property. Insurance can also cover non-physical types of damages and claims, including liability, professional errors, and even provide protection in the event of security breaches and hackers.
An insurance valuation is a way to assess what level of insurance your business requires. There are many different factors that come into play, and assessing your business insurance needs is different for an existing or a new company.
Startup companies and new businesses should have aninsurance valuation to know the levels of insurance required to provide the necessary coverage. Coverage can include replacement cost or rebuild value, and it is crucial to understand the difference as your business gets up and running.
Keep in mind, the valuation is on all assets for the business. This may include much more than just the physical assets and property. As new businesses often add assets very rapidly, having a valuation after major additions should be a priority.
Often businesses go years or even decades without an insurance valuation. This can potentially leave a business with a large gap between their current coverage and what they would require to rebuild or recover after damage or legal action against the company.
Taking the time to schedule a valuation to ensure you have the insurance needed to restart a business should be a priority for any business owner. It is worth scheduling an appointment if it has been more than a few years since the past valuation.
To obtain a current and accurate insurance valuation for your business, turn to the experts at B. Riley Financial.