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Business interruption
AccuVal helps ensure that a catastrophic event does not mean disaster for its clients by estimating the economic impact of a business interruption. Every aspect of the business is examined to estimate the magnitude of the financial loss that would be sustained due to a shutdown of all or part of the operation. AccuVal is unique among valuation firms because its clients have enlisted the firm to manage their businesses; no other valuation firm brings this type of hands-on experience.
Loss Adjustment - Post Loss Valuation
Companies routinely sustain damages covered by insurance, but their internal resources may not be adequate to determine the full extent of the loss. AccuVal can conduct a retrospective appraisal to provide estimates of Total Insurable Value after a loss by considering a variety of factors including the capacity of the plant, equipment ledgers and production records. A professional and accurate valuation following a loss allows all parties to move forward with confidence.
Risk Management
Risk Managers are better able to control costs when they are knowledgeable about the assets they manage. Given the current state of the insurance market, becoming knowledgeable about the value of real and personal property, inventory, intellectual property, product lines and other assets of the business requires a reliable insurance appraisal. In a post-Katrina world, companies need assistance from professionals who understand the insurance market has changed dramatically. AccuVal helps corporations and insurance companies align their interests, resulting in the best coverage at the most reasonable cost by:
- Estimating current replacement costs
- Properly classifying insurable property
- Providing proof-of-loss support
- Updating property values annually
AccuVal provides the information needed in a format that is easy to use and interpret. Customers may choose from a simple desktop review of the property schedule to a complete inventory of assets with corresponding value estimates. AccuVal can also assist with asset management by implementing tagging and tracking procedures and reconciling changes to the General Ledger.
Total Insurable Value
Choosing the most applicable value definition upon which to establish the "insurable basis" of assets is critical. This may include consideration of Replacement Cost, Reproduction Cost, Actual Cash Value ("ACV"), or some combination of all three definitions. In each case the insured values can be substantially different. AccuVal helps clients understand which definition(s) best suits their needs and the insurance carrier's requirements.
When estimating ACV, AccuVal leverages the world's largest database of machinery and equipment transaction information. This is important because:
- Values are derived by considering actual sales of similar equipment
- Companies mitigate the risk of their being a gap in coverage when loss adjustment is based on replacing the asset on the used market but the company is forced to buy new due to the lack of availability of an asset of equal utility.
- Business interruption costs are kept to a minimum because AccuVal can proactively help clients develop a strategy to quickly identify replacement assets and/or production capacity so operations are restored without costly delay.
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