Estimating Restaurant Property Worth for Insurance

One of the steps in purchasing restaurant insurance is estimating the worth of your property. Don’t make the mistake of believing the value of your business has anything to do with its resale value. In fact, your business insurance should represent all of your assets’ worth to ensure that, in the event of a significant loss, you are completely covered by the policy and able to recover from the event. As a business, there are several things you need to consider before you purchase a property insurance policy.

Evaluate Basic Assets

The first step in creating a restaurant insurance policy that is clearly representative of the company’s truth worth is to look closely at the assets you own. This includes:

• The real property of the building should include the value of the building as well as any outbuildings, fixtures that are permanent, and equipment. It should include all components of the building that are tangible and permanent components of the business.
  
  
• Business personal property also must be factored into the value of your policy. This should be the amount of real property that you own that may be a bit more liquid. This includes office furniture, your restaurant’s furnishings, computer systems, and inventory.

When factoring in these types of assets, you also must consider what the business insurance policy may pay out if an event occurs. Generally, you should need to replace the equipment and other lost assets if a big incident occurs. For this reason, most restaurant insurance policies should have replacement cost coverage. This could allow you to replace the lost items with equal or better products in the event of such a claim. Actual cash value policies, by comparison, may not provide this but rather pay the worth of the lost item at the time of the event. This may not be enough to replace the item so you can open your doors again.

When working with a business insurance agent, it is very important to consider the value of your company from the point of replacing it if a fire or another event completely leveled the property. The right level of restaurant insurance protects your assets so you can recover from such an event and get back to serving your customers.