According to a survey of 250 Sydney companies, 77% of small businesses hold no business interruption cover, and 60% lack burglary cover. These statistics are pretty scary for those small businesses, as underinsurance can have dire consequences and is a huge risk to their future and wellbeing. Should they need to rebuild or repair after damage to their own business or others as a result of their actions, huge losses could ensue. To help ensure your business doesn’t suffer the wrath of underinsurance and is appropriately covered, it’s important to seek the advice of a professional and make sure you’re absolutely aware of what cover there is available for you and your circumstances. Here we cover a few areas around how you can avoid being underinsured, and they are also great questions to ask your insurance broker.
Does my cover reflect replacement value?
Here we’re talking about replacement value of stock, equipment, buildings, that kind of thing. If your insurance cover falls short of what your actual replacement value is worth, you could be up for some hefty additional purchases come claim time. You may be underinsured because you initially wanted to cut premium costs, or perhaps your circumstances have changed since you first took out your policy, in which case your business has essentially ‘outgrown’ its policy. Time to update it!
Do I have enough insurance to protect my business?
In the event you give what is deemed to be negligent advice, or someone injures themselves or damages property as a result of your business or workplace, it’s important to have Public Liability and Professional Indemnity insurance in place. Otherwise, you could be sued and face some huge court expenses and payouts.
What about business interruption insurance?
Business Interruption Insurance is a key area of business insurance that is overlooked in many cases. However, this form of insurance can save your business should you be unable to operate because of damage to your premises by an event like a flood, storm or otherwise. If you had to shut up shop and not trade for days, weeks or months, how would you take any earnings and survive? Business Interruption Insurance can help pay to cover your business for the time it doesn’t trade, ensuring you stay afloat until things are ready to resume back to normal again.
To help safeguard you aren’t underinsured, make sure you meet with a professional broker to cover all your bases, Call Elliott Insurance Brokers today on 1300 635 315 to speak to one of our experienced brokers in Perth.
