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220-1102 · Question #677

After a local company office was destroyed by a hurricane, the company files an insurance claim for equipment replacement. The company maintained current, off-site backups. Which of the following is…

The correct answer is A. Inventory list. For an insurance claim regarding destroyed equipment, an inventory list is crucial for substantiating the quantity and type of items needing replacement.

Operational Procedures

Question

After a local company office was destroyed by a hurricane, the company files an insurance claim for equipment replacement. The company maintained current, off-site backups. Which of the following is the most important information to provide to the insurance company?

Options

  • AInventory list
  • BSoftware licensing
  • CWarranty information
  • DTopology diagram

How the community answered

(30 responses)
  • A
    70% (21)
  • B
    3% (1)
  • C
    17% (5)
  • D
    10% (3)

Why each option

For an insurance claim regarding destroyed equipment, an inventory list is crucial for substantiating the quantity and type of items needing replacement.

AInventory listCorrect

An inventory list provides a detailed record of all physical assets that were present and destroyed, which is essential for an insurance company to accurately assess the value of the claim for equipment replacement. Without it, the company cannot prove what equipment was lost.

BSoftware licensing

Software licensing is important for reinstalling software but is not the most important information for replacing physical equipment via an insurance claim.

CWarranty information

Warranty information is useful for repairs or specific replacements under warranty, but the primary need for an insurance claim due to total destruction is proving what was lost, not if it was under warranty.

DTopology diagram

A topology diagram shows how the network was arranged, which is not directly relevant to proving the monetary value of destroyed physical assets for an insurance claim.

Concept tested: Importance of inventory for insurance claims

Topics

#Insurance claims#Asset management#Business continuity#Disaster recovery

Community Discussion

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