A detailed inventory of business assets is essential to ensure complete coverage in the event of an insurance company claim. A thorough inventory of business assets is essential to running a business. Business insurance assets include the business building and everything in it, such as computers, furniture, and inventory.
Business property insurance, also known as commercial insurance, protects your business income if these items are damaged or stolen. If you run your occupation from your home, your home insurance may not cover you for loss of business equipment.
Even if you already have business insurance of property, it is important to take an inventory of your business assets. This will ensure that
- You won’t inadvertently find yourself without business insurance because you forgot to include an important asset.
- Make sure the claims process is as smooth and quick as possible.
- You can keep track of your company’s physical investments.
What is included in the inventory by business location?
For small business owners, creating an insurance checklist is very simple. This is a detailed list of all the physical assets your business depends on. In the event of loss due to theft, weather, or vandalism, these are the items you want your business insurance to replace or repair. For example,
- The building your business is located in.
- Office equipment (owned or leased, including furniture, computers, and phone systems).
- Business records, accounting information, and other documents.
- Business equipment, machinery, 3D printers, and other business equipment.
- Inventory and other business supplies
- There is outdoor equipment such as signs, satellite dishes, security cameras, and fencing.
Comparison of commercial property insurance quotes from leading providers in the United States.
How to Run a Business Insurance Inventory?
One solution is to take a detailed inventory of your commercial premises, starting at the end of the property, recording and photographing key information.
The inventory list should include information on the following key items
- Description of the merchandise
- Description of the inventory data
- Date of purchase
- Estimated value
Number of items
When taking inventory of a business, forget some items. This is why it is necessary to check the business premises several times and record everything.
Consider organizing the inventory by room.
- Having an inventory list organized by room – lobby, office, kitchen, etc. – makes it easier to update the inventory if necessary quickly.
Make Copies
If you’re taking photos or saving digital files, upload your inventory to the cloud and save it to a flash drive. Make several hard copies and one electronic copy if you’re taking notes.
Store flash drives and hard copies in a safe place, away from the office, so they can’t damage in the event of a disaster at the location.
Keep receipts for Business items.
Keeping receipts helps prove the value of your goods, and it also makes it easier to pay taxes and file claims.
Even if you already have insurance against small occupation risks, you can always adjust your coverage to account for overlooked or recently acquired items. A helpful way to do this is to create a checklist for business insurance renewal.
Proper inventory and liability business insurance for your company
If you consider renewing or purchasing new commercial property insurance, a complete inventory of your occupation will help you determine the amount of coverage you need. Whether they are renters or owners, most small business owners need commercial property insurance and general liability insurance.
- Public liability insurance covers common business risks such as customer injury, property damage, and advertising damage.
- This type of liability insurance is often required when entering into leases or contracts.
- You may also want to consider commercial general liability insurance as part of your business insurance.
- It combines commercial property insurance and public liability insurance into one policy, which is often less expensive than purchasing these policies separately.
What other commercial insurance products should I consider?
The insurance products you need depend on the size of your business and the financial losses you need to protect against. If your business owns its own vehicles, you will need commercial auto insurance for them, and private auto insurance or liability insurance does not cover commercial vehicles.
- If you or your employees use a private or rented car for occupation purposes, rental car insurance and non-rental car insurance provide additional coverage.
- Suppose you are involved in an accident while driving your private vehicle to work.
- In that case, your personal car insurance will not cover the additional costs incurred if you are responsible for the injury.
- If you work in the service industry, you may want to consider professional liability insurance.
- his type of business insurance, also famous as professional liability insurance, covers legal fees and court costs if a client sues you because of a complaint that your work has done incorrectly, late, or not at all.
Author Bio
Lily Poole is a Property and Home Insurance NYC officer by profession. She has pretty well experience in the insurance and accounting field and has an impressive profile in the training and development industry.
