While attending the Chamber coffee at Miller’s last week, the Miller’s folks mentioned how their business operates on a seasonal basis; bringing to mind the various property limit options that businesses, with any fluctuation in value, might want to consider.  Do the benefits of reporting outweigh the “hassle?”

 If your business fluctuation is constant…

With this option comes a monthly reporting form. Just like it sounds, you report the value of your property on a monthly basis and in a timely manner.  In addition to requiring accuracy, this form is subject to audit and requires that you provide a starting value – the most that you could collect in the event of a loss.  This form prevents you from paying for more coverage than you need, while offering adequate protection for the few months where the values are higher than the average month.  = Higher Maintenance

If your business fluctuation briefly peaks…

This option allows for as much as a 25% increase in the limit of insurance for a specified and very short (60 days maximum usually) time period. This form works well if you have a very trackable and consistent few months that show a large increase in values. = Lower Maintenance

If your business fluctuation is small…

With this option, you purchase a limit of insurance matching the highest exposure to loss you might have. It’s usually not worth the effort required for reporting form if the values don’t fluctuate more than $50,000. = No Maintenance

All of the forms dealing with fluctuating values can offer both benefits and drawbacks.  So…is reporting form your friend or foe?  Please let Ryan Insurance be your guide to determining which option works best for your business.