In recent months, and with the backdrop of hikes in the cost of living, Brexit, labour shortages and supply chain disruption, insurers are reporting an increase in underinsurance when it comes to processing claims.

You may ask what this has to do with you and it’s a valid question. The implications of underinsurance for your insurance policy however are far reaching.  To provide some context, underinsurance occurs when there is inadequate insurance cover to meet your needs. In the event of a claim, the claim amount could exceed the maximum limit that will be paid out by the insurance company, leaving your organisation responsible for the monetary shortfall.

So how big is the problem?

Sedgwick* – the company that deals with your claims – report that 80% of SMEs are underinsured and with government research suggesting that one in five businesses suffer a major disruption every year, the issue suddenly becomes very real.

It’s not all doom and gloom. Speaking to, and working with, your broker at Alexander Bonhill can help the situation. They are trusted advisors in this field and are well versed in bridging this slowly, shifting gap.  Please do speak to them with any concerns you may have.