Declared Values are an important part of Industrial Special Risks Insurance.

They provide insurers with the values of the property and Business Interruption exposures being insured.

What values may need to be declared? #

Depending on the policy, these can include:

• Buildings.
• Contents.
• Machinery and plant.
• Stock.
• Other property.
• Gross profit or other Business Interruption values.

The declarations can be broken down by location or situation.

Are Declared Values the same as the Limit of Liability? #

Not necessarily.

An ISR policy may have an overall Limit of Liability that is higher than an individual Declared Value.

The Declared Values still matter because they can affect the operation of the policy and any applicable co-insurance provisions.

Why should Declared Values be reviewed? #

Business values can change significantly over time.

Reasons include:

• Increased rebuilding costs.
• Inflation.
• New machinery.
• Increased stock.
• Business acquisitions.
• New locations.
• Increased turnover.
• Changes to profit margins.

Declared Values should therefore be reviewed at renewal and following material changes to the business.

Incorrect values can result in underinsurance.