By having your plant & equipment valued on an annual basis means that your machinery is more likely than not to be insured for the correct value. This can impact not only the premium you pay, but also in the event of a claim, the amount that is settled by the insurance company.
An example of this is from a recent claim, a client had a piece of their machinery insured for $20 000, the market value is $10 000 and their claim settlement (for a total loss) was $10 000 less GST and policy excess. They have not only been paying a higher premium for what they believe their machinery was worth, but they were disappointed at claim time, when the market value of the machinery was lower than the client expected.
So what does this mean for you? By having your plant and equipment insured for an accurate valuation can mean that you might save money on the premium you pay; at claim time your claim is faster; all parties involved with the claim understand the value and therefore you aren’t disappointed when a claim is settled. It can also assist with a sale or leasing of your equipment and add conviction to financial documents.
As always, contact the team at East West if you have any questions: