Valuable Papers Insurance

Your business burns. As you walk through the rubble, you come across the twisted metal that was once file cabinets filled with customer and business information.

Boy, are you going to be unhappy with the insurance coverage you have on those papers! Basic insurance pays for the blank paper. Effectively, your insurance company will pay you for two boxes of Staples copy paper for each file cabinet. Not much help!

The real cost of the loss of your paper records is in the recreation of the records. Time, clerical work, and the cost of investigating who can get you the info you lost is not covered unless you buy valuable papers insurance. Many package policies include $5,000 or $10,000 of coverage for documents. That won’t go far!

In addition to buying more insurance, consider risk management tactics. Scan important documents into digital form (then make sure your computer data backup process is exceptional). For documents that can’t be scanned, use fire-proof file cabinets.