Is your business under-insured?
Even if you have insurance policies in place to protect your organisation from the worst-case scenarios, this cover won’t be nearly as effective in the event of a claim if you are engaging in an increasingly common business mistake occurring throughout the country—under-insurance.
Indeed, research from the Royal Institution of Chartered Surveyors revealed that as many as 80 per cent of UK organisations are thought to be underinsured. Don’t let your organisation suffer the severe consequences of underinsurance in the event of a disaster. Review these top indicators of underinsurance to ensure robust cover:
- Incorrect valuation—Many organisations incorrectly value their property due to a variety of reasons (eg not conducting regular value reviews, not updating value after alterations or extensions, misunderstanding the difference between rebuild cost versus market value and not factoring in costs such as car parks, gates or paving), thus generating inadequate sums insured.
- Stockpiling problems—Your business may carry or store more stock on-site at different times throughout the year (eg for seasonal reasons or to prepare for Brexit). However, failure to update your broker on current stockpiling practices could result in underinsurance issues in the event of a claim.
- Business interruption issues—Even with business interruption cover in place, your organisation will have complications if your policy contains incorrect sums insured (eg excluding vital costs from your policy, such as payroll) or insufficient indemnity periods (eg only providing for one year recovery time after disaster).
Get in touch with Thompson Brothers Insurance for a free review of your current insurance policy. We will do all we can to ensure that you have high-quality cover at a great price.