Le Blogue - la sécurité d'être bien assuré!

How to Measure Insurance Limits

Connaissez-vous vos limites d'assurance
Serge Meloche | July 25, 2017


While building an insurance portfolio, once the risks that could affect your business have been identified, it is then important to quantify the insurance limits needed. 

You must determine, with the most precision as possible, the value of your goods, whether they be buildings, equipment, merchandise, tools, hardware, etc. Establishing the value of your assets will allow you to set the appropriate insurance limits needed to cover your business.

Several factors come into question when determining the value of your goods, and must be taken into consideration, notably:

  • Replacement cost, i.e. the cost of reconstructing or replacing your goods with material of the same nature and quality;
  • The requirements of municipal, provincial or federal reconstruction authorities;
  • New technologies that could raise the value of your assets;
  • The cost of making up for the time when regular business activities are paused;
  • The eventual loss of revenue following a bad incident.

It may seem simple to deal with these hypothetical situations, but reality has often proven otherwise. To establish the value of your assets, a professional is ready to complete a certified evaluation, taking all of the latter points into consideration.

Communicate with one of our personalized commercial insurance brokers to establish a plan that covers all of the risks you may face while running your business.

About the author
Serge Meloche

Serge is Client Relations and Development Manager, Damage Insurance Broker at Lussier Dale Parizeau.

Serge Meloche directeur | Lussier Dale Parizeau
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