What Does Total Insured Value Mean?

What does total insured value mean is a common question our Canadian insurance brokers are asked on a regular basis.  Since the insurance industry is full of acronyms and jargon it’s important to ask your business insurance broker questions like “What does total insured value mean?” and any others you may have about your business insurance so you fully understand how your commercial insurance policy works. In addition, it’s important to note that some commercial insurance terms are defined terms and need to interpreted in accordance with the exact definition provided in the insurance policy itself.  For clarity on any or all insurance terms speak to an ALIGNED Insurance broker or review our insurance glossary of terms for common definitions of commercial insurance terms.

The Answer To “What Does Total Insured Value Mean?”

Total insured value is a term used to explain the total amount of insurance available in a single loss on a commercial property policy.  Total insured value is typically calculated by adding the property value, business interruption value and the value of any/all other property at the location.  It’s typically used and found in larger commercial property insurance policies and can be calculated on a single location basis or can be calculated over a number of locations.  For blanket commercial property insurance policies the total insured value is often used to establish the limit of liability for the policy based on the location with the largest total insured value which becomes the limit available and across all locations.  A helpful tool to calculate total insured value is a statement of values and total insured value is also often referred to as TIV for short.

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