RMA Insurance would like to take this opportunity to remind our members of the importance of promptly notifying RMA Insurance when you have acquired new assets for the following reasons:
- Coverage Adequacy:
- New Equipment or Inventory: If you have recently purchased new machinery, vehicles, or increased your stock, it’s important too that they are reflected in your policy to ensure they are properly covered against loss, theft or damage.
- Property Enhancement / Acquisition: Significant property improvements, like expanding your facility, new acquisitions, or renovating your property can increase the value of your property, requiring an adjustment in your coverage limits.
- Preventing Underinsurance:
- Failing to update your insurance can lead to underinsurance. In the event of a claim, you might find that your policy does not cover the full replacement or repair cost of new assets, potentially leaving your business operations exposed financially.
- Compliance with Policy Terms:
- Not adhering to these terms could lead to claim denials or reduced coverage. Property valued at more than Two Hundred and Fifty Thousand Dollars ($250,000) whilst in the course of construction and all other property valued at more than Twenty Five Million Dollars ($25,000,000) must be reported to RMA Insurance within Sixty (60) days of acquisition.
- Specialized Coverage Needs:
- New types of assets might require specialized insurance, such as for electronic data, high-value tools, or specialized manufacturing equipment. Reporting these ensures your policy includes necessary endorsements or riders.
Steps to Take
- Business Inventory: Maintain an up-to-date inventory of business assets. This can be managed through software or a simple spreadsheet.
- Valuation: For high-cost or unique items, consider professional valuation to determine accurate insured values.
- Contact Us: Notify your designated MSR. Include details like purchase price, acquisition date, and any other pertinent information.
Why Delay Can Be Costly
Without timely updates, you risk significant out-of-pocket expenses in the case of a claim, which could have been covered or mitigated with proper policy adjustments.
Conclusion
Keeping your insurance policy up to date with your current business assets not only protects your investment but also ensures that should an incident occur; your business operations is adequately covered. Please review your assets and contact us to update your policy accordingly.
For any further assistance or to update your policy, please reach out to your Member Service Representative or visit our website at RMAinsurance.com.