Insurance Journal recently cited a report indicating, “Commodity price volatility and the rising cost of raw materials such as steel are fuelling a rise in rebuilding costs for plants and facilities, particularly for companies operating in the energy sector.”
In charting a prudent risk management strategy, all companies, not just energy companies, need to regularly update the repair and replacement cost for their property, plant and equipment. In addition to price volatility and rising costs, the replacement cost for equipment can skyrocket. While computer hardware costs may go down, other areas of a business may require increased investment. A machine’s replacement cost could potentially be many times its original cost. This “new normal” must be accounted for.
Choosing the amount of insurance coverage necessary to resume operations is a careful balancing act requiring the help of seasoned professionals who can help you see the bigger picture. Because external issues will invariably change, both sides of the equation must be balanced on a regular basis. The risk management professionals at JASONSELLSINSURANCE will help your company determine if its amount of coverage is adequate to meet any changed circumstances.
Jason Shroot can assist you in reducing the overall cost of risk for clients by producing a greater value for each insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution. We are dedicated to anticipating risk and helping firms recover from unplanned events that wait on the other side of one minute from normal.
To Identify and Correct Any Coverage Gaps In Your Insurance Please Contact Jason Shroot at 714-988-3325 or Jason@diversifiedinsurancequotes or http://www.jasonsellsinsurance.com/
