Tips For Creating And Maintaining An Inventory Of Business Assets

Posted on: 2 March 2023

Create an inventory of your business assets as part of your business insurance process. An inventory of assets proves that you own the items you claim to own. The inventory also helps prove the assets' value before loss or damage. Below are tips to help you create and maintain a good inventory.

Include All Assets

Remember to include all your assets in the inventory, both tangible and intangible. For example, include your business records and exterior items (such as satellite dishes on the roof). Remember to include items outside the business premises (for example, those with clients). Go through the inventory once you are done to confirm you haven't left anything out.

Provide Proper Descriptions

Describe your assets properly so that you and the insurance company can easily identify them in case of a disaster. Include serial numbers, purchase dates, and estimated values. You can even take pictures of assets whenever possible.

Organize the Inventory

Find a suitable system and organize your inventory. For example, you can organize it by type of assets or by room. Say you have a restaurant, you can list your assets by room, such as kitchen, storage, and dining area.

Use Relevant Media

Your inventory can include different media; you don't have to rely on written words alone. For example, you can take pictures or video records of your assets. Many entrepreneurs find mixed media use better than single media use.

Save Relevant Document Copies

For assets with documentary evidence, keep copies of the documents as part of the inventory. Such documents include purchase receipts, repair receipts, maintenance histories, and valuation reports. The documents may help you prove the existence and value of relevant assets if necessary.

Backup the Inventory

Having a single copy of your inventory is dangerous because you lose it if a disaster strikes and affects it. For example, if you keep the only inventory file in the storage room, you will lose the inventory if a freak storm floods the storage area and damages the file. Back up the inventory file and keep them in different locations.

Update the Inventory

Your business assets will change with time. You may purchase more assets, sell some existing ones, or upgrade some. Update the inventory at regular intervals. You should also update it whenever your assets significantly change. That way, the inventory always reflects your business's true position.

Contact an insurance agent to review your inventory and help customize a good commercial insurance package. Hopefully, you will never experience a disaster — but it's good to know you can get compensation if disaster strikes. 

For more info about business insurance, contact a local company.