In its simplest form an asset register is a list of all the assets owned by an organisation. Pretty obvious, you might say. The truth is that many businesses don’t have a list of all the things they own.
Vernon Engelbrecht, group CEO of asset management solutions company, National Inventory Data (NID), explains how a comprehensive asset register allows businesses to track and manage their assets, and provides a means to ensure prompt payment of replacement values from insurers if these assets are stolen or destroyed.
What is the best format for an asset register as favoured by insurers?
It’s advisable to keep your asset register in electronic format backed by a state of the art software programme. E-Mail-based reporting systems are extremely limited and flagging facilities may affect the insurer’s awareness of crucial facts relating to either the underwriting or the claims process.
For an asset register to be useful, it has to contain information on each asset so that the asset can be effectively managed. This includes a name that clearly identifies the asset throughout the entire organisation; a basic set of data that is the same for all the assets within the organisation, such as the location, age and assessments of value and condition; and any information about the asset that is necessary to manage it, such as when the asset was last serviced, or how much it has been used.
How often should an asset register be updated?
Most insurance companies require clients to update their asset register at least once a year, normally on the renewal date of their policy, However, if an asset register is compiled to address the age-old problem of averages as well as the unnecessary loss of money, you would be well advised to update it quarterly, or when you make a single major purchase.
What are supporting documents and how and where should they be filed?
Any document that proves the purchase, the method of payment, the date of payment, and a detailed description of the asset must be kept, as should the valuation certificate and delivery note if issued.These are extremely important documents and should at all times be kept in a secure environment. If possible, certified copies should be kept away from the risk address in order to still be available in the event of total destructionof the insured property.
For more information, contact 0861 NIDNID,+27 51 411 6363, www.nid.co.za
