A Piece of Advice Regarding Scheduled Equipment

After working with Commercial and Agribusiness clients for many years, I’ve found one of the most useful pieces of advice I’ve given is related to Scheduled Equipment.  Scheduled Equipment is considered those large ticket items (skid steers, tractors, fermentation tanks, etc.) that are listed (scheduled) on the insurance policy and have a specific value associated with them. 


Keep in mind that any piece of equipment over 5 years old has been added to the insurance policy on an Actual Cash Value (ACV) basis.  ACV is a method of valuing insured property, and equals the replacement value of the item less depreciation.  Each year, it is important to review your schedule with your agent to see if your current values of coverage should be reduced.  While some equipment has shown to hold its value in recent years, most equipment decreases in value over time. If you have a piece of equipment insured for $50,000 but the ACV value is only $40,000, in the event of a total loss, you will only receive the $40,000.  There is no sense paying for a limit of value you won’t receive payment for in the event of a loss.  This is a small way to minimize insurance premiums, and in my opinion, every bit helps.

Kim Bard, Commercial Lines Manager