Munro Greenhalgh offer a warning not to run the risk of under insuring!
Do not succumb unto temptation....
Sounds like we are delivering a sermon, doesn't it? Whilst we do not want to seem like a holier than thou preacher, we do (as always) strive to provide the best advice for you and your business. With inflation at 9.9% in September and possibly rising to 18% in 2023, and the cost of utilities and raw materials going skyward, you may be tempted to 'save on your insurance'. You may look to forego some covers, reduce cover limits or deliberately underestimate sums insured. Our advice would be to review your insurance to ensure you are properly covered in a rapidly changing world; you may actually have to increase some of your business insurances. You might say, "You would say that, wouldn't you!", but take the Construction industry as an example: the cost of materials has risen by over 27% in the last year alone (source: All Work construction material price index) leaving many construction businesses under-insured.
Similarly, in the Motor trade, supply chain logistics and raw material / spare part costs (and the availability of chips) has meant the increase in used car prices, and any garage must look to review the value of their stock to be properly insured.
Being underinsured is not good: it could lead to a claim being thrown out or, at best, a partial pay-out on a claim.
The global marketplace has never been so significant to local businesses: the 'domino effect' is real and we are all affected by international events like Covid 19, the war in Ukraine, global supply issues, etc. We are all in this together, but the only way to avoid being vulnerable to, for instance, the knock-on effect of supplier insolvency, is to be covered for this eventuality (possibly look to get trade credit insurance, for example).
None of this is good news - sorry - but just think for a moment just how bad it would be if you discovered, too late, that your business wasn't properly covered.....
So, to finish as I started off (sermonising).....
Thou shalt not bear false witness - do not deliberately underestimate sums for insuring, better to review your cover and safeguard the future of your business.
If you have any concerns over any insurance related topic raised in this article - please do not hesitate to contact us.
Stephen Cadman, Director, Munro Greenhalgh Insurance Brokers.
We make it our business to understand your business.
Munro Greenhalgh are Authorised and Regulated by the Financial Conduct Authority.
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