Every business is driven by records. Even in our digital society, businesses create mountains of critical documents. While most businesses know that they can protect their critical documents and records with valuable papers business insurance, what they do not know can cost them a lot of money and keep their insurance claims from being approved. Here are four facts about valuable papers business insurance that every business should know.
Valuable papers insurance is usually included as part of commercial property insurance and small business owner policies. Just like other forms of insurance, additional protection can be purchased through a rider. Business owners should calculate the real cost of replacing records before purchasing insurance. Many times, businesses will find that the true cost of replacing records is significantly higher than expected. They will need to review available commercial policies and then add additional riders as appropriate to ensure that the complete cost of reproducing records is covered.
Unlike other forms of property insurance, valuable papers coverage has higher payout limits and will cover the entire cost of reproducing records. That is, after any required deductible is met and up to the policy limit. This completely protects businesses from incurring significant records reproduction costs. Also, unlike other forms of property insurance, any coverage beyond the real cost of records reproduction will not be paid out. For example, if a business purchases $100,000 worth of papers coverage but only incurs $50,000 in costs when reproducing records, the additional $50,000 is not paid to the insured. In this case, the business simply purchased too much coverage and will not be issued a full policy payout. Only the real cost of reproducing records, up to the policy limit, is paid.
As with most other forms of insurance, responsible businesses can qualify for discounts when meeting certain criteria. The primary criteria for receiving a discount on valuable papers policies is to maintain secure backups of vital records. This can include off-site storage of paper copies and maintaining updated digital backups.
Physical Protection Requirements
Valuable papers policies typically require that insured papers are physically protected and secured in order to make a claim against the policy. This is in addition to any requirements for maintaining backups. Most insurance providers have physical protection and security standards for off-site storage and local maintenance of records. If these standards are not met, claims for damaged records will be denied.
Valuable papers protection is vital for any business that maintains records. Knowing what is required in the policy can help businesses save money and keep insurance claims from being denied.
Need help choosing valuable papers insurance for your Round Rock Business Insurance package? Call Integrity Network Insurance Group today at 512-989-6006 for more information!