Neil discusses underinsurance for businesses

Neil discusses underinsurance for businesses

2018-05-31T03:14:46+00:00January 5th, 2018|

Over 70% of Australian businesses are underinsured.

Insure your business accurately to ensure its success.

Many businesses don’t know they are underinsured and in the event of a fire, storm or flood, often cannot recover.

Businesses getting it wrong:

  • Don’t consider the potential financial loss
  • Think they know the true value of their assets
  • Don’t understand or are scared of insurance
  • Don’t want to risk paying higher premiums
  • Don’t consider the costs incurred or length of rebuild project
  • Don’t want to pay for an independent valuation
  • Don’t insure their profits and fixed expenses

Buildings – Some ‘Before & After’ underinsured businesses.

Building Type            Insured for             Actual replacement value

Shop Front                 $300,000               $710,000  – 137% underinsured

Factory                       $1,500,000             $10 Million – 567% underinsured

Warehouse                $1,500,000             $2,725,000 – 82% underinsured

Factory                        $13,000,000           $36 Million – 177% underinsured

Fact – In the event of a major loss 50% of businesses do not survive.

Don’t take the chance!

A review of building sums insured and Loss of profits needs to be carried out regularly.