Businesses in Buckinghamshire urged to check insurance policies in light of rising value of stock
Insurance broker A-Plan are urging businesses to check insurance policies in light of rising costs.
The warning comes, as, with the surge in cost of materials and labour, firms are being advised to check whether their property is currently correctly valued and protected. Consequences for a mismatch in value could be costly, including, in some circumstances, the claim not being paid out.
Gavin Cox, A-Plan’s Aylesbury branch manager, said: “Underinsurance is a problem for all business owners, so I strongly urge Bucks businesses to reassess their current insurance cover if they haven’t done so in the last six months.
“According to the Buckinghamshire Growth Board’s latest report, as of 2020, there are over 31,000 businesses that call Bucks their home; from major international brands to strong SMEs within the community here. We estimate that a significant proportion of these may be underinsured and at risk.”
One specific sector at risk is commercial property ownership as the rising cost of construction outpaces the wider rate of inflation. Already increasing at the start of the year, this has been exacerbated by the Russian invasion of Ukraine. This means businesses may now have inaccurate indemnity.
To put this into context, a recent study of 450 insurance valuation surveys conducted by Barrett Corp & Harrington found that 84 per cent of the insurance valuation surveys they conducted showed the property owners were underinsured.
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Responding to this, Cox said: “It’s important for landlords to note that a property’s market value and its insurance value are not the same; insurance value refers to the cost of rebuilding a property, so will include materials, demolition, and labour for example; all of which have increased in recent months.”
A-Plan’s warning coincides with the launch of its new commercial office within its Aylesbury branch, targeting what is says is a “growing local need for specialist commercial insurance”.
Cox said: “Now more than ever, with higher concerns over cost of living and day-to-day business operations, it is important for property owners to make sure their sums insured reflects what their exposures are if the worst were to happen.
“Any business owner or landlord in Aylesbury and surrounding areas with concerns about underinsurance can call our local branch and speak to a commercial advisor. Our team can then support you to ensure you don’t end up with a shortfall if, or when, claims are made.”
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Featured image credit: iStock
