Having insurance doesn't necessarily mean you'll recoup all your losses if you fall victim to fire, theft, or other losses. When an adjuster comes to assess damage from a loss, their mission isn't to pay you as much as they possibly can. It's to save the insurance company as much as they can. Thus, they look for proof that there was an insurable loss.

Proving your losses can be difficult if there's nothing left to prove what you owned - or if you don't remember what you owned.

To avoid problems, take the time to document what you own. Take inventory of any physical inventory, and of your equipment, furnishings, software, books, and other items that would be costly to replace. Record the purchase date and prices to help substantiate your claims. Don't forget to include the cost of software packages you download from the web instead of buying in a retail store.

Periodically take video or still photos of your business, too. Those may help prove the existence of any items that hadn't yet been included in your inventory if a loss occurs.

While you're at it, do the same for your home, too.

More: Does Your Home Business Need Insurance?

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