Almost half of all companies are underinsured on their business interruption protection according to the latest research.
According to research from the Chartered Institute of Loss Adjusters, 43 per cent of business interruption policies are underinsured by an average of 53 per cent.
If you’re underinsured it means you have insufficient cover to meet its needs. That could mean assets are valued and insured at less than their true value or the limit of indemnity is too low or the maximum indemnity period is too short.
It’s easy to overlook these things when things are going well. But ultimately, your business is at great risk if things take a turn for the worse.
Business can be interrupted for all kinds of reasons – staffing issues, delivery and supply chain problems and even the weather. If your business can’t operate it impacts heavily on your customers and your reputation too. The things you have spent so long building up can suddenly crumble.
To ensure that your organisation has the proper amount of cover, take the following precautions:
- Review your business interruption policy at least annually to ensure that all your information is up to date.
- Speak to your Broker to ensure the correct formula for calculating the Estimated Gross Profit is being used.
- Determine an appropriate indemnity period that allows your business enough time to recover.
- Review your policy wording to ensure that you have the broadest cover possible.
- Increase your sum insured to protect against inflation.
Our award-winning team have specialists who can work with you to ensure you have the right cover and correct sums insured.
Get in touch with us for a chat.