What is the best way to insure my business?
What is the best way to insure my business? The desire of most business owners is to insure the business in the most effective way to prevent an unforeseen risk from causing financial ruin. For this reason, few hesitate to look for a commercial insurance package that is adjusted to the risks that their service or productive activity entails. They want to be protected from damage that can be caused by lightning, a company vehicle accident, a typical customer fall, vandalism, fire, theft, a customer claim for damages, or a great flood.
Commercial insurance protects, in addition to the business building, fixed assets, machinery, and equipment included in the policy. But when preparing the policy there is a dilemma: to insure the company’s assets for the replacement cost -RC, for its acronym in English, or for the real value in cash -ACV, for its acronym in English-.
Some people consider that it is a formality, that they are two ways of solving the same problem. But they are wrong. Each one has a different financial impact. If a fire occurs in the company in question and it is protected by an RC policy and the expensive central server is destroyed, the insurer after the claim should deliver the necessary funds for the expensive damaged server.
Whereas, if the company had opted for an ACV policy, which is cheaper, the insurer would limit itself to disbursing the amount of money similar to the value of the server on the second-hand market. That is, she would take into account the depreciation over the years and use.
There is no better way than another, the key is, before signing a policy, to discuss each aspect of the contract with a specialist in commercial insurance. This can review every detail of the contract and advise what is most convenient for the business, depending on its characteristics and the stage of development in which it is.
Don’t overlook that the cheapest business insurance in Florida can be found at Univista Insurance. What is the best way to insure my business?