An asset can be defined as anything that holds monetary value. An asset can also be defined as anything that generates income. A business is an asset because it generates revenue and can be sold in exchange for money. A car is an asset because it can be exchanged for a given amount of money. Businesses usually have a variety of assets, which may include cars, inventory, furniture and fittings, appliances, and many other things. All these assets, including the business itself, need to be managed properly. An important part of business asset management is protecting the business from every possible risk. In addition to installing CCTV cameras, burglar alarms, fire alarms and a sophisticated security system, business owners should also consult SmartBusinessInsurance to ensure they have adequate insurance protection. This will go a long way in ensuring all your assets are protected.
What is Asset Management?
Asset management is the practice of tracking and managing capital assets to ensure maximum use. Once a business asset has been purchased, it must be received and tagged. Information about the asset must then be updated in the company’s records. The depreciation of the value of the asset must also be tracked to ensure the asset can be retired when it reaches the end of its useful life. The information contained in asset management records is often used in the preparation of financial records, such as balance sheets and profit/loss accounts among others.
Insurance Policies to Protect Your Business Assets
There are many types of insurance policies that business owners can use to manage their assets. The following are just a few of the policies you may want to purchase to protect your business assets:
i) Commercial Property Insurance
This is the most important business insurance policy that a business can purchase. It is meant to protect all the assets owned by the business, such as furniture and fittings, inventory, appliances, and the business premise itself. Depending on the value of your assets, you should buy a policy that offers sufficient coverage. For instance, if the immovable and movable tangible assets in your business are valued at $1,000,000, you should buy a commercial property insurance policy that provides at least $1M in liability coverage.
The alternative is to purchase a business owners insurance policy, commonly referred to as BOP, with a liability coverage limit of at least $1M. Since there are many insurance companies out there, it can be challenging to find the right business insurance provider. For this reason, you should look for the best business insurance agent to help you with the search.
ii) Commercial Vehicle Insurance
This is an important insurance policy for businesses. If your business owns several commercial vehicles, you have to purchase commercial auto insurance to protect those assets. Commercial auto insurance policies usually cover property damage to the commercial vehicle as well as damage to third party vehicles. Commercial auto insurance policies also cover damage and loss of cargo. In case of an auto crash, vandalism or auto theft, your business will not incur any losses as the insurer will cover all the resulting liabilities.
Every business asset manager or business owner needs to purchase suitable insurance policies to protect their assets from damage or theft. The ideal policy should offer sufficient liability coverage for all the risks that may arise during the life of the asset. Business owners should consult business insurance agents when searching for the best insurance policy for their coverage needs. Since there are many insurance companies that can insure your assets, it is crucial you consult an insurance agent. Below are factors to consider when looking for the best insurance agent:
There are many quacks out there. You don’t want to consult a quack when you need an insurance policy. After all, you may end up with a raw deal. Ideally, you should look for a licensed insurance agent. The validity of the license and issuing authority are key factors of consideration. Licensed insurance agents adhere to the laws of the land and follow industry best practices. This means that they can offer the highest quality of service. You can be assured of finding the best business insurance policies when you consult a licensed insurance agent.
The amount of experience different insurance agents has, should be checked. This is because you want to hire the most experienced agents as they are much more competent. The years of experience and types of insurance policies a firm has been handling over the years must be checked. The most experienced service providers deserve to be given special consideration as they have a better understanding of the needs and expectations of different types of businesses.
When an insurance agent serves a client diligently and leaves a smile on their face, the agent can be assured of getting a positive review and a 5-star rating. In addition to that, the happy client can also write a great testimonial about the company. When comparing insurance agents, therefore, it is crucial you read as many reviews as you can find and browse through some testimonials and ratings before you make your final decision.
4. Number of Insurance Partners
The best insurance agents usually work with dozens or even hundreds of insurance companies. They are not contracted to a particular firm. This independence means that these firms have the best interests of the client at heart. Firms that are on contract are under obligation to send clients to the insurance company that contracted them. This means they may not offer clients the best deal. When doing your research, therefore, you should only consider independent insurance agents.
Tracking, maintaining, and insuring assets are the three most important pillars of business asset management. Therefore, it is crucial you also maintain your assets. Vehicles, plant, and equipment should be serviced regularly as recommended by manufacturers. Only qualified professionals should be hired to carry out maintenance and repairs on your business assets. This will also help to ensure that these assets perform optimally and have a long life.