Resources
Review of capital for an industrial risk.
Underinsurance is not detected by reading the policy; it is detected by comparing it with the reality of the company. This review takes a morning and saves the most money of all those we do.
Building
- Start from the current construction cost per square metre in the area, not the purchase price.
- Exclude the value of the land from the insured capital.
- Add demolition, debris removal, technical fees, and licences.
- Include the additional cost of rebuilding on an occupied site versus a free one.
- Include internal urbanisation, enclosures, fixed installations, and external civil works.
- Consider prior valuation of capital if the risk exceeds one million euros.
Machinery and installations
- Update the inventory with additions and disposals for the year.
- Value at replacement cost new, including transport, assembly, and commissioning.
- Identify critical equipment and its actual manufacturing and delivery time.
- Check the cover for machinery breakdown separately from material damage.
- Review moulds, tooling, and spare parts, which are almost always forgotten.
Stock
- Set the capital with the maximum stock point of the year, not the average.
- Declare the valuation criterion: manufacturing cost or sale price.
- Include third-party goods in storage and declare their ownership.
- Check the cover for goods in internal transit between warehouses.
- Review the automatic increase clause during the campaign period.
Loss of profits
- Recalculate the gross margin with the forecast for the current year.
- Adjust the indemnity period to the replacement time of critical equipment.
- Declare the suppliers and clients on which the activity depends.
- Anticipate the additional expenses necessary to reduce downtime.
- Check if there are licences or authorisations that may delay resumption.
A correct capital today ceases to be so in three years. It is advisable to set the review as an annual task, not as a reaction to a claim.
More resources
Other working lists
ChecklistInsurance programme renewal checklistThe checks we perform before going to market, to approach renewal with documented risk and real negotiation margin.ChecklistProtocol for action in the event of a claimWhat to do, in what order and with what deadlines during the first hours. Designed to be printed and kept outside the computer.ChecklistMinimum requirements to be insurable in cyber riskWhat the market demands today before offering. It does not improve the premium: it determines whether there is an offer or not.