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Why You Need Valuation Services in Order to Secure Insurance for Your Business

Why you need valuation services in order to secure insurance for your business

If you want to protect your business, you need to make sure that it is insured properly. This is why you need valuation services in order to secure insurance for your business. Professional valuation services can enlighten you to with regard to how much your business, as well as its assets, is worth. With this knowledge you will be able to get the correct insurance for your business.

Every valuation company will be home to a few valuers. These valuer consultants should be able to give you an accurate valuation of your business or company. Many valuation companies focus on both corporate and industrial sectors, regardless of what business you own, they should be able to provide you with the knowledge and expertise that you require. Your business is an investment – which is why it is extremely important for you to insure it properly. If you were to encounter theft or damage of any description, you will want to make sure that your business insurance will cover you. If you have owned a business for many years, it may be time to schedule another valuation. Your assets and your business can decrease and increase over time and although you may believe that your business insurance is accurate, you may be mistaken.

Accurate valuation information is extremely important. This information should be captured in a report that states, in detail, exactly what your business or company is worth. You will then be able to get in contact with your insurance company and make the necessary adjustments to your business insurance. Knowledge is power, and the more that you know with regard to the inner workings of your business, the better – which is why it is important to get valuations done regularly. If you need to make sure that your business insurance is covering all of your assets, you should enlist the professional services of a valuation company today.

Why is it important to do valuations regularly?

Apart from insurance purposes, it is important to do valuations regularly for other reasons. One of these reasons is due to tax purposes. As much as you need to make sure that your insurance is up to date, you also need to make sure that you can account for everything within your business. Were you to get audited, you would need to provide as much information as possible. When you get a valuation, you will be provided with the following information:

  • Open Market/Fair Value – disposal/acquisition of assets/ asset finance
  • Forced Sale Value – auction sale values
  • Residual Values – for accounting purposes
  • Remaining Lives – for accounting/depreciation purposes
  • Depreciated Replacement Value – for accounting and balance sheet purposes
  • Existing Use Value – transfer of assets in a going concern business.

With all of this information at your fingertips, you will be prepared for any situation.