Is Your Commercial Property Underinsured? Here’s 5 Ways to Protect Your Business

Is Your Commercial Property Underinsured? Here’s 5 Ways to Protect Your Business

Whatever your business, the building that houses your operations plays a crucial role in your success. But what happens if disaster strikes and your commercial property is underinsured, leaving you with inadequate coverage to handle the damage? Nearly half of UK commercial properties are underinsured, leaving many business owners unaware and vulnerable to significant financial risks.

Navigating insurance complexities can feel overwhelming. That’s why we’re here to guide you, helping ensure your commercial property has adequate insurance so your business stays fully protected.

Underinsured Commercial Property Puts Your Business at Risk

When you insure your property for less than its true rebuilding or replacement cost, you risk paying out-of-pocket for repairs or reconstruction after an incident. This situation places unnecessary financial pressure during an already critical time.

In recent years, rebuild costs have risen dramatically due to increasing material and labour expenses. Yet, many business owners haven’t updated their policies. Inflation, outdated property valuations, and a general lack of awareness all contribute to underinsurance.

Robison & Co Can Help

At Robison & Co, we work to help businesses like yours avoid the pitfalls of underinsured commercial property. With our expertise, we ensure you have the right cover, giving you peace of mind that you’re fully protected.

How to Avoid Underinsured Commercial Property

Here are five ways to prevent underinsured commercial property:

1. Get Regular Property Valuations
   Accurate and regular valuations ensure you’re insuring your property for its current value, not an outdated one. A professional valuation will reflect the real cost of rebuilding or repairing your property.
2. Insure for Rebuilding Costs, Not Market Value
   Many business owners confuse market value with the cost to rebuild. These two figures often differ significantly, so base your cover on rebuilding costs.
3. Adjust for Inflation
   Inflation impacts everything, including material and labour costs. Review your policy annually and adjust your sums insured to align with current economic conditions, ensuring your cover grows with the market.
4. Set an Appropriate Indemnity Period
   When selecting business interruption insurance, choose an indemnity period that allows your business enough time to fully recover. If the period is too short, you may face exposure if rebuilding takes longer than expected.
5. Regularly Review Your Policy
   As your business evolves, your insurance cover should adapt as well. Whether you expand, relocate, or upgrade your property, keep your insurer informed. Regular reviews of your policy help ensure continued protection.

Protect Your Business with Robison & Co

The risks of underinsured commercial property are real, but you can avoid them. Robison & Co helps you make informed insurance decisions so you’re not left unprotected when it matters most. Our experienced advisers work closely with you to assess your needs and ensure your commercial property has the right cover.

Don’t wait until disaster strikes. Contact us today to work with one of our expert brokers, and make sure your business is properly protected.

Peace of Mind and Financial Security

By partnering with Robison & Co, you’ll gain peace of mind knowing your insurance covers repair or rebuilding costs. Not only will you avoid financial loss, but you’ll also safeguard your company’s future.

To discuss a new policy, or current policy  please get in touch with us via one of the options below!

Book a call        01730 265500        Contact request form        hello@robison.co.uk

 

*All Images are taken from Unsplash