Because of this, the only safe way to provide adequate coverage under a valued form is to issue coverage equal to the total number of working days times the maximum possible loss for any one day.
The basic difference between these valued forms and other business interruption and business income forms is that the latter are written on an actual loss sustained basis.
These valued forms state that the insurer of direct physical damage coverage must first pay or "admit liability" for a loss to the insured property before the business interruption claim is validated.
Here's an illustration of how the valued form works: A plant that manufactures widgets sends their quarterly statement to the insurer on January 1 with a stated daily business interruption value of $100,000.
The valued form provides simplification and ease of adjustment when a loss occurs, but some additional bookkeeping may be involved in submitting values more than once a year.
The valued form plus an extended period of indemnity can also provide this coverage with a known value and simplified claim procedure, but runs the risk of the value at the time of loss being lower or higher than declared.
"Given the substantial contribution CRE makes to the economy, to jobs, to regenerating our towns and cities, as well as the security it provides us through pension investment, it is in any Government's interest to promote investment in this sector through appropriate regulation, support and fair taxation." Dr Savvas Savouri, chief economist at Toscafund Asset Management and author of the report, said "CRE takes on varied and economically valued forms
across all of the UK and it would be no exaggeration to say that the fortunes of the UK economy turn on a well functioning CRE market.
The great extent to which our employees are valued forms
the foundation of our company and is at the heart of our being able to provide exceptional service.”
Salespeople count on positive word-of-mouth as one of their most valued forms
of marketing, realizing that the sale is nearly made if a trusted source shared a good perception.
YouTube has turned video blogging and sharing into more valued forms
of advertising, and Facebook is raising the value of word-of-mouth advertising with its Facebook Beacon feature--essentially blasting your likes and dislikes out to your network of contacts.