Valuable Papers and Records and Accounts Receivable Insurance
Understanding the Exposures and Available Coverages
For businesses and institutions around the world, the exposure to valuable papers and records losses needs to be considered with all insurance reviews; because the loss of research documentation, accounts payable, and all forms of valuable books and printed media, could be devastating to an organization. The cost of reconstructing valuable papers and records following their damage or destruction can be overwhelming. In the case of irreplaceable books or documents, the losses can be extraordinary.
To help cover these exposures, two types of coverage are generally available: first, valuable papers insurance, covering the cost of research and replacement of valuable papers and records; or where they cannot be replaced, pay for their value that is lost or destroyed. Second, accounts receivable insurance covering the cost to research and replace the records and recover the dollar value of money owed to the firm by customers or clients and to also pay for money that cannot be recovered when accounts receivable records are lost or destroyed in a fire or other disaster.
Limited valuable papers coverage is offered by extension in most basic property insurance forms, but reliance on this limited coverage can prove to be grossly inadequate in the event of a major loss. The preferred method to cover valuable papers and records, however is to purchase separate valuable papers and records insurance, and if the value of accounts receivable should warrant it, accounts receivable insurance.
Accounts receivable (A/R) is one of a series of accounting transactions dealing with the billing of a customers for goods and services received by the customers. In most business entities this is typically done by generating an invoice and mailing or electronically delivering it to the customer, who in turn must pay it within an established timeframe called credit or payment terms. Wikipedia
This issue of Adjusting Today takes a detailed look at the coverages available to properly insure and understand the financial exposures from valuable papers and records losses.
Adjusters International can Help!
Contact us at 888.382.2468 or visit our Contact Us page
Adjusting Today is provided free of charge as a public service by Adjusters International, Inc., disaster recovery consultants. It is provided for general information and is not intended to replace professional insurance, legal and/or financial advice for specific cases.
Adjusters International Leadership
Experience, professionalism, and a deep-seated commitment to customer service are the hallmarks of our industry leadership. Adjusters International boasts more senior and certified public adjusting professionals than any other organization of its kind. Our FEMA recovery team is staffed by top-notch specialists with proven, on-the-ground expertise, whose sights are focused on making sure clients receive every dollar of funding for which they are eligible. Together, the Adjusters International team represents some of the best and most experienced minds in their fields.
