The Steps To Insurance Valuation For Any Business

by | May 31, 2021 | Financial Services

As a business owner, insurance is a critical aspect of protecting your assets. Many business owners initially complete a valuation of the property, inventory, assets, and buildings when purchasing or building the business. However, as a business grows and expands, completing an insurance valuation is essential to ensure you have the coverage you need.

Identifying Property Types

There are several steps to an insurance valuation. It is a process to identify the value of the real property and the business’ personal property. Real property includes the business’ physical assets, including the land, buildings, and all installed systems, equipment, and machinery.

The business’ personal property is considered all other items that make up the business. Office furniture, computers, artwork, personal property of employees, and other similar types of items. While smaller in size, these items can still be costly to replace in the event of a loss.

Working with a Professional

Utilizing the services of a business valuation professional provides a clear picture of assets, values, and recommended insurance coverage. These professionals may recommend a level of coverage for property based on replacement cost or actual cash value.

Replacement cost includes the cost to replace the item. Actual cash value is the replacement cost less the depreciation. The level of depreciation is determined by asset age as well as wear.

After completing the insurance valuation, discussing the options for insurance coverage levels is the next step in protecting your business.

For expert assistance with any business or investment insurance valuation, talk to the team at B. Riley Financial. To see a full listing of our services, visit us at

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