According to Barrett Corp & Harrington, on average, 77 per cent of the properties it surveys are underinsured by 45 per cent. In addition, during its recent thematic review into the handling of SME claims, which included material damage and business interruption, the FCA discovered that in 12 out of the 20 case studies there were issues relating to sums insured. In eight of the cases, the material damage sums insured for buildings, trade contents and/or stock were inadequate. It was also identified that in four cases, the loss exceeded the 12-month maximum indemnity period.
Underinsurance is a widespread problem for commercial businesses that cannot and should not be ignored. And this is why Towergate Insurance Brokers’ Newcastle team is on a mission to help.
Not having the required insurance is a very real threat to the health of a business, causing the FCA to recently advise that this risk was prevalent in commercial claims “to an alarming degree”.
It’s a state of affairs that can have disastrous consequences and there is a real possibility that your business could be underinsured. For example, this could be because your cover is based on the market value of the building, whereas it should be based on the rebuilding cost. It could also be that you have overlooked the cumulative costs of small items such as hand tools and racking, or simply that you have altered or extended the property.
So what is the solution? For starters, it is vital that you don’t just focus on finding the cheapest priced policy for your property and/or business interruption insurance. It is critical that you receive good advice.
At Towergate Insurance Brokers, Newcastle, the team will work with you to make sure that your insurance is adequate and that the policy provides good quality cover and, crucially, won’t leave you underinsured in the event of a claim.
Now is the time to take stock and arrange a professional valuation of your business. Don’t rely on guess work or out-of-date information. You need to be confident that your insurance cover is sufficient to cover all your assets – in the unfortunate event that the worst should happen.
Towergate Insurance Brokers
Towergate Insurance Brokers is a trading name of Towergate Underwriting Group Limited. Authorised and regulated by the Financial Conduct Authority.