Valuable Papers & Records Insurance Coverage

As an individual or organization, you likely have valuable papers and records that you’d like protected. This could range from sales records, customer order forms, contracts, and other documents that your business needs to operate efficiently. 

Valuable papers and records can get damaged or destroyed because of fires, employee errors, sprinkler defects, and other perils. This is where valuable papers and records coverage comes in.

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What is Valuable Papers and Records Insurance?

Records and valuable papers business insurance covers the costs of replacing damaged or destroyed documents. It also covers the cost of having these replacement documents signed, notarized, or made official for public purposes.

Valuable papers coverage has evolved over time. There’ve been additions to valuable papers and records insurance coverage to include a clause tagged “Cost of Research.” This extends the valuable papers insurance coverage to the cost of researching and restoring records on all media, especially if no duplicates exist.

Note that valuable papers and records insurance would only apply to losses that arise from the perils indicated in the policy document. Similar to other covers, valuable paper business insurance will only pay the costs up to the limit indicated for each insured.

Further, it is important to note that with this aforementioned evolution of valuable paper and records insurance, most carriers have excluded coverage for loss to records existing as electronic data. In fact, there’ve been stringent distinctions made between coverage for valuable papers and records and that for electronic data loss. 

However, there are carriers that define records and documents as any information inscribed, printed, or written with no explicit exclusion of electronic records.

Types of Valuable Papers and Records Insurance

Valuable papers and records insurance can be categorized into three types, depending on the documents insured. 

Valuable Papers and Records Insurance for Replaceable Documents

This type of valuable papers and records insurance provides coverage to all papers and records owned by your company that can be replaced and reproduced. If a covered peril happens, you’ll receive money for the cost of research and extra labor for replacement or reproduction. 

Valuable Papers and Records Insurance for Irreplaceable Documents

This covers any type of papers and records that cannot be replaced or reproduced. Examples are primary research data, confidential papers, and others. If a covered peril happens, valuable papers and records insurance for irreplaceable documents will cover the monetary value of what was lost or damaged. 

Coverage doesn’t apply to all items automatically. Irreplaceable records and papers must be scheduled one-by-one in the terms of the policy.

Accounts Receivable Coverage

Accounts receivable is a type of valuable papers and records insurance you can use to insure documents containing information about products customers availed. Examples are contracts, invoices, and other records that prove a product has been bought and hasn’t been paid yet.

In the event of damage or loss, accounts receivable insurance will cover the money you would have collected from customers, cost of research, and cost of reproduction or replacement. 

Note that the amount of insurance money you’ll receive will be subject to the limits assigned by the insurance company to your accounts receivable coverage. 

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Documents Covered in Valuable Papers and Records Insurance

As highlighted, valuable papers insurance compensates you up to the cost of replacing or restoring valuable records and papers that have been lost or destroyed. Further, most carriers exclusively define valuable records and papers as those written, printed, or inscribed except money, security, data records, and data stored electronically.

A review of insurers offering this policy yields the following as the valuable papers that are covered. These include:

• Books

• Maps

• Films

• Drawings

• Manuscripts

• Licenses

• Accounting lenders

• Mortgages

• Deeds

• Medical records

• Employee records

• Employee lists and files

• Legal papers

• Business permits

• Contracts

• Loan documents

Note that even if you have made duplicates of any of these papers, the insurer is mandated to cover the cost of their replacement.

Consider this. What if, for instance, your employee records are damaged? You could very well reconstruct the record manually by reentering the employees’ records or by using other undamaged records that have said information.

However, the insurer is expected to reimburse you for the cost of buying the materials needed to record the employee details. What’s more, it will cover the cost of hiring additional labor to recreate said damaged document.

Cyber Liability Insurance for Valuable Papers and Records

Valuable papers and records insurance rarely covers soft copies of papers and records stored in computers. 

In case of a data breach and important files are deleted, you can use cyber liability insurance coverage instead. 

Cyber liability insurance offers electronic data loss coverage, depending on which insurance company underwrites it. 

Electronic and data loss coverage takes care of financial losses, research costs, and expenses for professional services if files on a computer, server, or any other similar property of your business get damaged or lost because of a breach. 

 

How to Get Valuable Papers and Records Insurance?

Valuable papers and records insurance is automatically included in commercial property insurance.  Look at the quote of your commercial property policy and you’ll find a section there indicating the assigned limits for valuable papers and records as well as accounts receivable. 

Valuable papers and records insurance is also included in a business owner’s policy. It’s because a BOP, in essence, is made by bundling commercial property insurance with general liability insurance.

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Valuable Papers and Records Insurance Cost

While this coverage has come a long way, a lot of the most well-known carriers still don’t offer the cover as a standalone policy. Those that do place stringent exceptions and aren’t keen on offering information premiums upfront.

The average valuable papers and records insurance cost is $43.65 per month or $523.80 per year. Several factors will affect just how much you pay in valuable papers and records insurance premiums. Most important is the assessed value of the paper or record in question.

In addition, here’s a table showing the cost of valuable papers and records insurance from the recommended carriers. 

 

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Best Valuable Papers and Records Insurance Companies

The best way to protect your valuable papers and records is to work with a reputable company with extensive experience in the field. Here’s a list of the best valuable papers and records insurance companies. Read to know their pros, cons, and cost of premiums. 

 

NEXT Valuable Papers and Records Insurance

Pros

• Best overall

• Get an online proof of insurance and send as a text message, email, or social media post

• Fastest valuable papers and records insurance

• Great customer service and reputation

• Issues an online proof of insurance instantly

• Outstanding value for money

• Bundle two or more insurance policies and get a 10% discount

Cons

• Couldn’t find any

NEXT is an insurance company that specializes in covering small businesses. It offers policy bundle discounts and quick online application. 

NEXT’s commercial property insurance comes with a $5,000-$10,000 valuable papers and records insurance. This is offered as an automatic add-on. And so, you don’t have to pay for additional premiums. 

Best for: Best overall; Fastest valuable papers and records insurance

Average cost: $17 per month 

Our rating: 10/10

CoverWallet Valuable Papers and Records Insurance

Pros

• Compare valuable papers and records insurance quotes online

• Stable rates

• Easy online policy management

Cons

• Not an insurance company but an insurance broker 

CoverWallet is an insurance broker which allows you to compare the quotes of its partners and buy a desired coverage online. To get covered, you use its online quotes comparison platform by choosing a coverage and providing some details about your business. 

This company’s valuable papers and records insurance covers important business documents in and out of your business’s premises. CoverWallet sells valuable papers and records insurance as an automatic add-on to the commercial property coverage of business owner’s policies. This company’s valuable papers and records insurance offers $10,000-$25,000 coverage. 

Best for: Comparing quotes for valuable papers and records insurance online

Average cost: $19.16 per month

Our rating: 10/10

Tivly Valuable Papers and Records Insurance

Pros

• Compare quotes over the phone

• Responsive customer service 

• A partner of many reputable insurance companies

Cons

• You need to call to get a quote 

Approach Tivly (formerly CommercialInsurance.NET) if most insurance companies won’t sell their valuable papers and records insurance to you.  It will hook you up with its partners that can provide coverage regardless of your business profile. Call Tivly now and compare the quotes of valuable papers and records insurance over the phone. 

Best for: Comparing the quotes of valuable papers and records insurance over the phone

Average cost: $21 per month

Our rating: 10/10

Thimble Valuable Papers and Records Insurance

Pros

• Quick to issue an estimate of your rates

• On-demand coverage

• Valuable papers and records insurance offered as an automatic add-on to commercial property coverage

Cons

• You can’t reach customer service by calling 

Similar to CoverWallet, Thimble offers its valuable papers and records insurance as an automatic add-on to the commercial property insurance of its business owner’s policy. You get coverage for on-premises and off-premises valuable papers and records. Your valuable papers and records insurance from Thimble has a $2,500-$10,000 coverage. 

Best for: On-demand valuable papers and records insurance

Average cost: $22 per month

Our rating: 9/10

Hiscox Valuable Papers and Records Insurance

Pros

• Automatic policy renewal

• Quick to issue quotes

• Considerable experience in underwriting insurance for businesses 

• In-house team of insurance adjusters

Cons

• Poor customer reviews 

Hiscox’s valuable papers and records insurance is available as an automatic add-on to its commercial property insurance. This provides a $2,500-$5,000 coverage for important business documents. What’s good about this company is that your coverage automatically renews every year. That said, you’re sure to enjoy coverage all the time, provided that you continuously work with Hiscox.

Best for: Valuable papers and records insurance that automatically renews every year

Average cost: $24 per month

Our rating: 9/10

Chubb Valuable Papers and Records Insurance

Pros

• Excellent reputation for customer service 

• Best-in-class coverage options 

• Extensive insurance agent and broker network 

• Great online service

• Responsive and easy-to-use mobile app 

• Cash settlement opportunities 

• Robust cybersecurity protection

Cons

• Chubb’s premiums are significantly higher

Founded in 1882, Chubb is a leading publicly traded property and casualty insurance company. It operates in over 54 countries and territories and insures businesses and individuals in all 50 states.

While typical property insurance policies are designed to protect your property and what’s inside, there’s usually limited coverage for valuable papers and records. With a Chubb Valuable Articles policy, you can rest assured that your papers and documents are well protected.

Chubb’s base coverage includes the following:

• Extended replacement cost

• Cash settlements

• Replacement cost coverage

• Electronic data restoration

This base coverage comes at $152.92 monthly or $1,835 annually. Evidently, insurers looking for the cheapest rates will find themselves locked out by the significantly high premiums charged by Chubb. However, the insurer does offer a number of discounts that could see your premiums significantly reduced.

Best for: Add-on coverage options

Average cost: $152.92 per month 

Our rating: 8/10

Progressive Valuable Papers and Records Insurance

Pros

• Valuable papers and records cover can be added to an existing home insurance policy

• Protection against a variety of perils

• AM Best rating of A+ Superior

Cons

• High-valued papers and documents might not be covered within Progressive’s homeowner’s coverage and, as such, would require a standalone policy

• No clear communication on when Progressive requires appraisals 

Founded in 1937, Progressive is focused on becoming the consumers’ and agents’ number-one choice. In fact, Progressive allows you to add a rider to your property protection policy that covers valuable papers and records. Note, however, that Progressive might require you to purchase a standalone policy if the value of the paper or records exceeds a predetermined amount.

For valuable papers and records insurance, Progressive will charge you $25 monthly or $300 annually. If you are expected to purchase a standalone policy, then this will typically cost 1.5% to 2% of the valued price. An insider tip would be to schedule the valuable papers and records on your existing property protection policy. This will save you 50% on your annual premiums.

Best for: Complementary products and bundled savings

Average cost: $25 per month 

Our rating: 7/10

MiniCo Valuable Papers and Records Insurance

Pros

• Coverage of up to $1 million

• Higher limits are on offer 

• Competitive premiums 

• $0 deductibles 

• Online quote tool

• Insurance for the full value of documents and papers 

Cons

• A limited number of customer reviews

Through MiniCo Insurance, you will be able to protect your valuable papers and records at competitive premiums and $0 deductibles. A great advantage of working with MiniCo is that they do not require appraisal at the point of application. Still, it continues to offer the best value choice for owners of valuable papers and records.

Founded in 1974, MiniCo offers this specialty product in partnership with AXA XL. With time, the insurer has evolved to gain an A+ rating from AM Best.

The online quote tools provide policyholders with quotes in less than a minute. This means that the insurer only offers custom quotes depending on what valuable papers or records you want insured. 

To file a claim, you are required to get in contact with the Director of Claims Management and Loss Control Services. This is best done via the phone or through the mail. An adjuster will contact you to gather all the relevant information and settle the claim in a mutually agreeable manner.

Best for: $0 deductible valuable papers and records insurance

Average cost: $30 per month 

Our rating: 6/10

American Collectors Insurance Valuable Papers and Records Insurance

Pros

• Industry experts on board

• Broad coverage

• Inflation guard protection

• Automatic coverage of new additions

• Low insurance rates

• Easy underwriting process

• Excellent customer service

Cons

• No complimentary insurance products 

• The carrier doesn’t publish an average claim response time 

American Collectors Insurance, based in Cherry Hill, New Jersey, has been providing American valuable papers and records owners with this specialty insurance product since 1976. At present, the insurer is part of the NSM Insurance Group, which is a further testament to its financial strength.

American Collectors Insurance offers prospective clients a comprehensive and easy-to-navigate website. It offers in-depth product information, which makes online application a breeze. 

Note that this company’s company’s insurance for valuable papers and records isn’t for businesses. Instead, the coverage is designed for collectors who want to insure their comic books, photographs, books, advertising memorabilia, stamp albums, etc. 

Best for: Insurance for a collector’s valuable papers and records

Average cost: $49.20 per month 

Our rating: 8/10