The key to successful insurance planning is to make sure that you’ve got the right amount of cover in place to protect you when the unexpected happens. Many businesses are at risk of being underinsured for their business contents. We understand the need to manage costs, however, it is important this is not at the expense of insurance cover.
Should the worst happen, having accurate sums insured on your contents allows us to focus on putting things right.
Our claims experience tells us that businesses owners are putting their investments at risk by failing to maintain adequate sums on their content insurance leaving them susceptible to under-insurance.
During a recent burglary claim, the tobacco stocked by the business was stolen – it amounted to nearly double the sum insured. In another incident involving fire, the contents sum insured was $50,000 with replacement costs amounting to $70,000.
The time to discover that your sum insured is inadequate is not when you need to make a claim. If the sum insured is too low you may not receive sufficient funds to fix the damage or replace stolen items.
It could prove difficult and costly to borrow the money you need to cover the shortfall which then puts the finances of the business under increased pressure. Having the correct sums insured can help your business keep its doors open should you experience a loss. You will be much better placed to continue servicing your customers and putting money through the till.
Ask an insurance broker for help
It can be difficult to accurately assess the contents sum insured, which is why we can help you to estimate what the costs would be to make your business right again after an incident.
Approaching renewal time is a good time to reevaluate your sums insured. This will give you peace of mind and position your business to withstand an insurable event.
As your insurance broker, we can help to mitigate your risks and minimise what can be a significant financial impact on your business should the unexpected happen. If you would like to know more or discuss this further, please contact one of our experts and we look forward to assisting you.