What would you do if a natural disaster, a fire or other catastrophic
event destroyed the business in which you have invested all of your time,
money and heart?
No one likes to think about or plan for the
effects a catastrophe or theft, but unexpected events do occur and planning is
necessary.
After a catastrophe, one of the first things
you will need is a list of all the assets that
were lost or destroyed. With the stress and
shock of the situation, it will be very hard
or near impossible to recall — opening the
door to possibly understating your business loss, says Jim Coleman, a property
documentation specialist at Westland
Insurance Brokers.
A cost-effective video property inventory
service that can better prepare the business owner for a future catastrophic loss is
currently available.
“‘A picture is worth a thousand words’
describes the situation perfectly,” says
Coleman. “Video property inventory is an
innovative way for business owners to protect their assets and their business.”
Smart Business spoke with Coleman
about video property inventory services
and how they can protect a life savings and
provide peace of mind.
What is a video property inventory?
This comprehensive service offers a complete visual record of your business assets
in the event of catastrophic property loss
due to fire or theft.
It has two components. The first is a high-quality digital video documentation of all
business assets, which gives you a general
view of quality and quantity of assets of the
business. The second component is digital
photographs of specific assets. This can
include custom equipment or items you
might want to document in greater detail
than you get with video. The combination of
video and photos provides the details you
need when submitting an insurance claim.
The video is presented on a DVD, and digital photographs are encoded to a CD. The
DVD can be played on any DVD player,
while the CD can be viewed on and photos printed from any computer. Scanned business documents can also be encoded to the
CD. Within a week, the client receives a
package that includes two copies of the
DVD and CD along with other valuable
information.
How does this inventory service assist in the
claims procedure?
Having a pre-loss visual record of your
business assets will help you identify specific items lost and provide accurate information to the adjuster. This is an added
value for everyone involved in the claims
process. Insurance companies want to pay
fair value. Reviewing a video inventory
saves time and money in claims research.
A fair value can then be assessed for payment of claim and restoration of normal
business operations as soon as possible.
How should business owners prepare for the
video inventory?
The types of assets we record vary from
business to business. Items may include
machinery at a printing company, fabric
rolls in an upholstery warehouse, or computer equipment, plasma TVs and expensive furniture at a mortgage company.
A business owner should think about suffering a loss. Any relevant documentation
should be set out to be photographed during the inventory.
It is important that you accompany the
photographer on the inventory tour to
describe any valuable machinery or assets
so you have a visual and audio record.
Besides a visual record, what does this service provide businesses?
This service can assist a property broker
in making sure the business has proper
insurance coverage. After the inventory is
collected, you should meet with your insurance broker to review your assets and
determine if there is sufficient coverage.
Inventory should be updated every three
years or when a business is growing or
immediately after a new major purchase.
In the event of a catastrophic loss, an
inventory can assist in speeding up the
claims process and getting a business back
on its feet as soon as possible. High-quality
digital video and photographic documentation allows an accurate assessment of the
loss in a timely manner. This service can
provide business owners or homeowners
peace of mind, knowing they have a complete digital record of their assets without
having to be a technology wizard themselves.
Can customers use this service for their
homeowners insurance?
Absolutely. If it makes sense for a business, your next greatest asset is probably
your home. Almost always, a business
owner will see the value of the business
inventory and request a home inventory.
Any items of particular value, such as
jewelry or heirlooms, should be pulled out
and documented. A property documentation expert can help you document items
you may have overlooked as valuable. It is
a small amount of time and money for such
a significant protection.
JIM COLEMAN is a property documentation specialist at
Westland Insurance Brokers Inc. Reach him at (949) 388-0211 or
[email protected].