Underinsurance – Is Your Business At Risk?
80% of properties are underinsured*, and the estimated underinsurance total for all UK commercial properties is £340 billion**. So, it is crucial to make sure you are accurately covered.
*Data from CPA Surverying Services 2021.
**Estimate based on British Property Federation (BPF) data on UK commercial real estate.
WHAT IS UNDERINSURANCE?
Underinsurance is when the cover you have purchased is not enough to meet your business requirements in the event of a claim. Insuring assets for incorrect values or setting cover limits too low is likely to result in underinsurance.
One of the most important things to consider when taking out an insurance policy is just how much cover you actually need. If your cover isn’t adequate and you need to make a claim, you could end up paying a lot more than you anticipated.
There are many factors that affect whether a business has the right levels of cover in place or not. Inflation, supply chain challenges and the ongoing coronavirus pandemic are just some of the current things at play – individually they can have a huge impact but, combined are a perfect storm.
Covers and limits set even just 12 months ago can now be out of date, leaving businesses potentially exposed and vulnerable should they need to make a claim.
COULD YOU BE UNDERINSURED?
Below are just a few indicators that your building could be underinsured: