Don't fall into underinsurance trap; Make sure your insurance is fit for purpose, says Lynne Noble, of Wilby Ltd.
UNDERINSURANCE is a common problem among businesses and can have a significant impact on claim settlements should it arise.
It is important that businesses understand the true cost of important assets, whether it is the cost of rebuilding a property or the cost of replacing important plant and machinery.
The Building Cost Information Service estimates that underinsurance in UK commercial property could be as high as 80%.
In addition, businesses can often underestimate the cost to replace and reinstate plant and machinery, which can often be higher than the original purchase price, depending on market fluctuations and stock levels - a good example being exchange rate fluctuations following Brexit which may mean that imported machinery is much more expensive.
This level of underinsurance can mean that if a business suffers a significant loss it's ability to quickly bounce back can be severely hampered.
So, how can your business avoid underinsurance? Valuations are key. A professional valuation can ensure that your key assets are correctly insured to avoid underinsurance.
Wilby can arrange low-cost desktop Royal Institute of Chartered Surveyors assessments or full on-site rebuild cost assessments of your buildings to ensure your assets are insured adequately.