Every risk manager and business owner needs to be aware of the importance of adequately protecting machinery and equipment before damage occurs--and before discovery that the insurable value is too low.
No particular industry, nor its machinery and equipment, in fact, is immune from damage caused by wind, fire, flood, quake, tornado or storm. Significant money and time can be lost if a true and accurate value of machinery and equipment is not determined prior to damage.
Recently, 70 percent of risk managers and business owners surveyed confessed that they arrived at a policy's insurable value by relying on a depreciation schedule or a "guesstimate" to determine fair market value. Unfortunately, neither of these methods accurately reflects what the machinery and equipment is really worth today.
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