Record levels of inflation have sent property and asset values soaring and insurance levels are not keeping pace.

This means the insurance coverage and sums insured values you had last year may not be enough to protect your business property and assets today.

Consider these factors and the potential impact on your business:

  • Your business property and assets are constantly changing in value. Your business is growing, you might invest in new equipment, take on a new tenant, upgrade your premises or increase your inventory.
  • With inflation, there is a growing gap between the insured value and the actual reinstatement value of your business assets.
  • With a claim, this value gap can cause problems as the claim payment may be lower than the actual cost to reinstate your property!

This issue is what we call the Value Gap in Business Underinsurance and we are urging you to take action now to protect your business.

Guide: How to protect your business property and assets against underinsurance

Read our guide to find out how your business property can become underinsured, the impact it could have on your organisation and how you can protect your assets!

The value of broker involvement in helping your business to address underinsurance

Involving an insurance broker who understands your industry sector and the risks that are particular to your business will help you ensure you have the cover you need. We're here to help. Connect with one of our experts who can help you organise a professional insurance valuation and address underinsurance today.

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Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient's industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers' control.

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