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Mortgage & Insurance Advice

What A Reliable Valuation Could Mean For Your Business Insurance Premium

When looking for business insurance, it’s important to have an accurate valuation of your assets. This will ensure that you get the right level of protection, while also avoiding paying over the odds for your premiums. Many businesses don’t realize that they can get their business valuations done by independent third parties.

This means that when you’re buying your policy from a company such as Smart Business Insurance, you’ll know exactly what’s covered and how much it will cost. You may be wondering why your business needs a valuation – after all, it’s not like you’re selling the building or anything. But there are several reasons why having an up-to-date valuation matters:

1. More accurate insurance premiums

More accurate valuations can lead to more accurate insurance premiums. If you’ve had an appraisal in the past six months, it’s likely that it’s still considered current by your insurer and can be used as a reference when determining your premium. However, if it’s been longer than that, it may be time to get another one done. This is especially important if any changes have occurred that might affect the value of your property or belongings. For example, if you’ve made major renovations or added on to the property, this would affect its total cost and thus its valuation.

2. Eliminating gaps in coverage

Gaps in coverage can be costly to businesses because they don’t receive the protection, they need from their insurance policies. When there are gaps in coverage, businesses are left vulnerable to losses that could have been prevented if they received better coverage for their needs. For example, if a business has no fire coverage but has a warehouse full of inventory that could be damaged by fire then this leaves them vulnerable to losses which could have been prevented with proper coverage.

But if they had fire coverage then they would receive payment from their insurer if anything happened to their building or inventory. This would help eliminate any gaps in coverage which could reduce their costs tremendously over time.

3. More affordable insurance premiums

If you’re looking for cover for a particular item in your premises, then having an up-to-date valuation will make sure you get the right level of protection at the best price possible. If you’re asking for too little cover, then your insurer is likely to try and negotiate down the value of what they offer before they agree on a contract with you. If they think they’re going to have to pay out more than they thought if something happened, then they’ll expect more money from you up front so they can recoup any losses later on.

4. Tax planning and preparation services

Insurance companies can help you find ways to reduce your tax liability by taking advantage of certain deductions and credits available to businesses. Insurance agents also have connections with local government agencies, which can provide valuable information about any tax incentives or breaks available to businesses in their area.

5. More accurate property replacement costs

Insurance companies have access to highly specialized databases that track current prices for everything from office furniture to construction equipment, allowing them to provide accurate replacement cost estimates based on current data rather than outdated information from five years ago, which makes it easier for them to accurately calculate how much coverage you need now versus how much coverage you needed in years past when rates were lower due to the recessionary economy.


The importance of a reliable valuation for your business insurance premium cannot be overstated. Your business insurance will cover you from a variety of potential losses, including fire and smoke damage, theft and vandalism, as well as any liabilities that might arise from your employees or customers.

If you don’t have proper insurance coverage for all of your assets, you could find yourself in a difficult situation if something does happen. Without a reliable valuation, you could be paying too much in insurance premiums, which can significantly impact your bottom line.