Is Your Insurance Coverage Keeping Pace?
Is Your Insurance Coverage Keeping Pace? There are Problems with Property Valuations Today!
Insurance Journal recently cited a report indicating, “Commodity price volatility and the rising cost of raw materials such as steel are fueling a rise in rebuilding costs for plants and facilities, particularly for companies operating in the energy sector.”
The report went on to warn this imbalance could potentially have disastrous consequences for companies that don’t increase their insurance coverage. They could learn that while they are insured against what can happen one minute from normal, their amount of coverage may be inadequate.
In charting a prudent risk management strategy, all companies, not just energy companies, need to regularly update the repair and replacement cost for their property, plant and equipment. In addition to price volatility and rising costs, the replacement cost for equipment can skyrocket. While computer hardware costs may go down, other areas of a business may require increased investment. A machine’s replacement cost could potentially be many times its original cost. This “new normal” must be accounted for.
Choosing the amount of insurance coverage necessary to resume operations is a careful balancing act requiring the help of seasoned professionals who can help you see the bigger picture. Because external issues will invariably change, both sides of the equation must be balanced on a regular basis. The risk management professionals at KMRD Partners will help your company determine if its amount of coverage is adequate to meet any changed circumstances.
KMRD reduces the overall cost of risk for clients by producing a greater value for each insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution. The firm’s diagnostic process is supported by its unique collaborative technology, KMRD XCHANGE ®
We are dedicated to anticipating risk and helping firms recover from unplanned events that wait on the other side of one minute from normal.
To identify and correct coverage and service gaps in your insurance contact us at contactus@kmrdpartners.com before one minute from normal strikes your company.
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