Here is a quick definition of replacement cost coverage; Replacement Cost value is the amount it would cost to repair or replace an item with one of the same kind and quality as the original — in today’s market.
Replacement Cost Coverage usually reimburses you for the full cost of replacing the items you lose, rather than simply reimbursing you for the value of the item at the time it was lost. In other words, your insurance policy would pay what it would cost to go out to a store and purchase the item today.
From theatrical costumes, sets, to musical instruments, ampliﬁers and sound boards, from cameras, video equipment, and computers to custom-made puppets –equipment is an integral part of the entertainment an integral part of the entertainment business.
Having replacement cost coverage will allow you to continue operations after a loss with the least amount of disruption.