Brexit and Under-Insurance

Posted on May 26, 2017 · Posted in Financial

Brexit and Under-Insurance

Following the invoking of article 50 it is expected that continuing currency uncertainty may make it more expensive to import goods such as replacement equipment, plant or machinery. The planned EU exit may also have an impact on the cost and the delivery time for replacement machinery, plant or other contents if a supplier is based in the EU, which needs to be factored in to sums insured. Under-insurance remains an issue for businesses and the FCA (Financial Conduct Authority) recently reported finding ‘an alarming degree of under-insurance’ amongst UK companies

The British Insurance Brokers Association have recently produced a guide which advises businesses how to obtain correct and regular valuations, consider how the risks to their business change including areas such as cyber risk and data protection and to base the sums insured for buildings on the cost of rebuilding and not the market value. The guide covers a number of areas of cover including asset protection, business interruption and liabilities and provides further food for thought as to whether the basis of your cover remains adequate.

The BIBA guide is available by following this link and if there are areas of cover you are uncertain about or you feel you require further advice about, please contact your Account Director