Gallagher shares tips on avoiding underinsurance

Gallagher shares tips on avoiding underinsurance | Insurance Business Australia

Insurance News

It outlined factors that could impact businesses

Insurance News

By
Roxanne Libatique

With property and asset values skyrocketing due to inflation, global brokerage Gallagher has shared tips on avoiding underinsurance.

In its latest blog, Gallagher said business owners can avoid underinsurance with their properties and assets by focusing on the following:

changes in the value of business property and assets as the business grows;
inflation’s impacts on business property and assets, including the gap between business assets’ reinstatement value and insured value; and
impact of value gap on insurance claims payment.

“Businesses are often surprised to discover their assets are not covered to their full value under their insurance policy. This means when the unexpected strikes, they will be forced to cover the difference between their claim payout and the cost to reinstate or rebuild their property,” Gallagher said.

Gallagher also emphasised the significance of getting professional insurance valuation of the business property and its assets to estimate the cost to rebuild or reinstate an asset at current value, setting adequate insured values for the business property.

“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,” Gallagher said.