In the event that a transferee's crystal vase is broken during shipping, what does typical corporate policy insurance cover?

Typical corporate policy insurance often covers the cost to replace items at their current market value, which is reflective of the amount it takes today to replace the vase. This approach is a standard practice in moving and relocation policies because it acknowledges that the value of items can change over time due to market fluctuations. By ensuring that the coverage is based on the current replacement cost, the transferee is afforded the opportunity to acquire a similar item without incurring additional out-of-pocket expenses, thereby aligning the insurance with the principle of indemnity, which seeks to restore the individual to their previous financial position prior to the loss.

In contrast, coverage based on the original purchase price or weight of the vase might not accurately reflect what it would cost to replace the item today, particularly if the vase has appreciated in value or if its cost has changed significantly since it was purchased. Similarly, an amount less depreciation may not provide fair compensation, as it doesn't consider the replacement cost in the present market. Thus, focusing on the current replacement cost is the most beneficial and fair policy for the transferee.