Client Profile
| Industry: | Manufacturing | | Entity Type: | Corporation | | Ownership Structure: | Public | | Geographic Footprint: | International | Annual Revenue:
| >$3.4 billion | | Number of Employees: | 7,200 | |
Issue
A frozen food manufacturer had been updating its Statement of Values (SOV) for its property insurance by using CPI adjustments for more than 10 years. Its property insurance broker wanted to know how far off its SOV was to current values and asked the manufacturer to undergo a partial insurable value appraisal.
Solution
CBIZ’s insurable value appraisal team performed a sampling and eventually a complete insurable value appraisal. Site visits, blueprints, interviews with location contacts and engineering personnel revealed that the manufacturer had understated its building square footage by more than 1.4 million square feet. Additionally, our analysis found that the SOV did not split reporting values between real property and business personal property, and the fixed asset ledgers did not accurately represent the original costs for assets that had been incorporated in recent acquisitions.
Outcome
The manufacturer’s overall values increased by 47%, roughly $870 million for its property values. Our appraisal gave the manufacturer accurate and supportive replacement cost new values along with Construction, Occupancy, Protection, Exposure (C.O.P.E.) and underwriting data and business personal property values and data that it used to enhance its position for property coverage and premium allocation in the insurance marketplace.