‘Assets’ is a word that is frequently heard in a business context, particularly in relation to business insurance PA. As a business owner, in order not to find yourself over- or under-insured, it’s important to understand what your assets are made up of, how much they are worth, and what it might cost you to replace them in the event of a loss.

Your business assets are those items which are included in everything to do with your business – not just stock and your buildings. Your assets include your vehicles, fittings, computers and other electronic equipment, signage, cash, bank accounts, decorative elements like artwork and casual furniture, and office equipment.

What they are worth and what they might cost you to replace may be very different. You need to take into account variables like depreciation and inflation. You need to keep up to date with the current values so you are aware of the potential costs if you are faced with needing to buy replacement items. This should be factored into your insurance policy. You should keep purchase receipts and valuation certificates, particularly for unique or expensive items like specialized equipment or an original artwork so that you are able to prove value.

In the event of a claim on your business insurance PA, you will need to prove the value of the items you need to have replaced. Keeping records of your assets is just as important as any other record keeping in your business. A comprehensive stock take and inventory, and up-to-date bookwork should offer you the opportunity to build and maintain this for the long term.