We’re all aware that the market constantly shifts, causing the costs of goods and services to fluctuate. For businesses to thrive, owners must adapt accordingly. In the commercial insurance world, this means having an up-to-date valuation of your needs so that way you don’t find yourself under-insured. That’s a risk nobody wants to take. Take it upon yourself to prepare for whatever the upcoming year may bring.
Realize That Your Coverage May Not Reflect the Current Value
Each year, the costs of goods and services typically rise. It’s evident that that the price you paid for your structure years ago significantly differs from today’s value. Similarly, your commercial insurance coverage should match your anticipated future needs. So, if your current coverage barely comes close to what you’d need in case of a catastrophic loss, there is a future risk of being under-insured.
Calculate Your TIV (Total Insurance Value)
Find out how much coverage you may need by accurately calculating your structure’s total insurance value (TIV). The value of your commercial property is determined in many ways including market value, assessed value, and replacement value. You can try to assess your TIV with these considerations in mind by referring to your fixed-asset records that have been adjusted for inflation. However, a more accurate property valuation method is to hire a third-party appraisal firm. Make sure you’re working with a reputable firm by referring to the Appraisal Institute website.
However you decide to assess your TIV, make sure it’s done often enough to keep you fully insured for the days ahead.
Learn About Unexpected Costs
Out of sight, out of mind. Often, we don’t anticipate problems until they occur, then it’s too late to prepare for them. As a business owner, it’s in your best interest to seek out potential threats to your business. Prevention is the best way to mitigate problems, the next best way is to lessen the severity of their impact by making sure your insurance coverage adequately suits your needs.
As a savvy business owner, staying ahead means staying prepared. Calculating your total insurance value (TIV) isn’t just a fancy term—it’s your shield against unexpected hits. By aligning your coverage with your structure’s real worth, you’re putting your business on solid ground. Don’t wait for surprises; take charge now. Get in touch with one of our trusted agents at Lifetime Insurance Services today to see how we can better protect your business.