Valuable Papers Business Insurance Coverage

Did you ever wonder what would happen if you lost all of your business documents in a fire or a flood? Losing small business customer lists, invoices, and contracts may mean incurring expense and taking the time to recreate these records. The cost of replacing professional documents such as those maintained by accountants, lawyers, and doctors may even be heftier. How many hours of lost productivity would result in replacing records? Would you need to recreate originals? Would you have to hire temporary personnel?
Valuable papers business insurance coverage provides protection in the event of a loss of critical records. Generally, this type of policy covers written and printed documents as well as inscribed records and documents. Books, drawings, mortgages, deeds, manuscripts, films, and maps are typically covered. Certain “documents” such as money, securities, programs, and converted data are usually excluded.
Along with the loss of vital papers, the cost to replace records (up to a limit) is included in valuable papers business insurance coverage. For instance, the policy will cover having soaked papers dried and reproduced, whether caused by a flood, indoor sprinkler, or fire hose.
Typically, valuable papers business insurance coverage is included as part of a small business owner policy or part of a small business property insurance policy. It’s a good idea to sit down and consider the actual cost related to replace vital documents. This includes the cost to reproduce records that were damaged or destroyed to their original state. Oftentimes, the small business owner realizes that the cost of reproduction or replacement is more than they originally thought once they sit down and crunch the numbers. By figuring out a solid estimate for the replacement or reproduction cost, you can ensure that you’re adequately insured.
Most experts also recommend that small businesses have a document retention policy and back up plan in place — and followed. Having your records protected by implementing sound records management policy lowers your risk of vital document loss.