As the insurance market continues to require increasingly detailed information and comprehensive valuations, calculating appropriate values will help organizations select the proper coverage, set realistic limits and better manage their risk.

Proactive time element and property valuations will help organizations determine the appropriate amount of coverage required. Inaccurate valuations and worksheets may result in premiums greater than necessary or inadequate coverage.

Companies should consider re-evaluating and analyzing the following risks upon renewal of their insurance coverage:

• Business interruption (BI) risks, including interdependencies.
• Contingent business interruption risks.
• Maximum probable loss scenarios.
• Replacement cost valuations.
• Stock values/finished goods at selling price.
• Property values.

Business interruption valuation

As the initial step to updating and re-evaluating an organization's business interruption values, first analyze its operational data, financial information and continuity plans. Then create a comprehensive analysis on time element values that are derived from the identification and quantification of potential operational and financial risks.