Underinsurance is an ever increasing problem in the UK, with three quarters of commercial properties currently underinsured. Underinsurance occurs when property or contents are insured for less than their true value. The majority of commercial property insurance will contain an average condition. This will state the insurers will only pay a proportion of your claim. For example, if you insured 10,000 worth of stock but had in fact 20,000 worth of stock you have only insured 50%. By the same mathematics insurers will only pay 50% of your sum insured and therefore you may only receive 5,000 when in fact you could have lost 20,000. Here at Higos we have seen recent evidence where clients have chosen to part self-insure their contents, believing this may lower insurance premiums. However this can have devastating effects. Without speaking to a professional broker like Higos you could unintentionally non-disclose to your insurer, potentially resulting in the following: Your insurance policy could be cancelled You may have to pay back any previous claims paid Any current claims could be repudiated It may be impossible to obtain any further insurance Self-insuring is an option for all non-compulsory insurances. If you do this, you may receive a premium discount but you must disclose what you are self-insuring to your broker. Be aware, if you consider the risk small so will the insurers and your premium will reflect this. In short, when considering trying to save money do not cut corners on protecting your business assets. Higoscanadvise you of other discounts available, such as insuring on a first loss basis. Call Higos and we can discuss alternatives or find you a more competitive premium which does not put your business at risk. Wewill advise you on the areas that matter, keeping your business fully insured, whilst stillproviding competitive premiums, with cover tailored to suit the needs of your business. We have an in house claims department who will ensure you are treated fairly and professionally, in addition to a number of local branches, should you wish to discuss your needs face to face.
Underinsurance Is A False Economy