Recent News - Do you have the right level of insurance cover for your business?

Over-insurance means you could pay too much for your cover. Under-insurance means your claim may not be paid in full in the event of a loss and you may have to make up the difference from your own resources.
Two recent real life examples illustrate the point:

• A Devon hotel was insured for £6 million (Buildings) and £625,000 (Contents) but our professional valuation found that the actual reinstatement costs were £5 million and £441,000 respectively resulting in an annual premium saving of £2,000
• A leading manufacturer of bedroom furniture was insured for £4.5 million (Buildings) and £1.8 million (Plant & Machinery) but our professional valuation revealed that these figures should have been £8.52 million and £3.52 million respectively

In both cases, the professional valuation gave our clients greater confidence in their sums insured and clear definition of the split between buildings and contents.

There are a number of reasons why your current sums insured may be inaccurate:

• You haven’t had professional valuation in the last three years
• Your figures are based on market value instead of reinstatement costs
• You have relied on rounding up historical figures on a year by year basis but may not have taken into account the increase in raw materials and labour costs
• You have invested in new equipment or major refurbishments which have not been taken fully into account

So if you are at all anxious that your insurance arrangements may be weakened by the wrong sums insured, please ask us about a professional valuation. We have experience in all major industries and will be please to quote for your project on a ‘without obligation’ basis.