Final answer:
The risk manager should consider the new eight color web printing press as an addition to the company's property value for insurance purposes and adjust the property insurance coverage accordingly, taking into account the replacement cost and impact on business continuity.
Step-by-step explanation:
When revising the insurance limits for a printing company that has purchased a new eight color web printing press, the risk manager should consider the printing press as an increase to the company's property value that requires adjustment in the company's property insurance coverage. Since the printing press is a large, valuable, and permanently installed piece of equipment, it constitutes a significant investment for the company. The risk manager should assess the replacement cost of the press, including installation costs, and adjust the insurance policy's limits accordingly to ensure that the company is fully protected in the event of loss or damage.
Additionally, the risk manager must factor in the potential operational impact that loss of the printing press would have on the company's business continuity. It is essential to comprehend that property insurance does not only cover the physical items but also the potential income loss if those items are temporarily out of service due to covered events. The risk manager should consider adding or revising business interruption coverage to mitigate the risks associated with equipment downtime.