Has your commercial property got enough insurance cover?
Shropshire insurance experts have warned that 75 per cent of commercial properties do not have enough cover in place – and that property owners could be unaware of the risk they are taking.
Dave Williams, of Henshalls Insurance Brokers, in Newport and Shrewsbury, said research had shown that up to three-quarters of commercial premises across the UK were under-insured.
“This is an extremely risky situation as a lack of sufficient cover could lead to company directors being sued by shareholders, and it could even cause a business to collapse altogether with job losses as a result. And the worst thing is that many commercial property owners may not even be aware of the chances they are taking.”
Dave said there were many types of buildings that could fall into the under-insured category but there were some common characteristics that could signify a company’s premises were potentially susceptible.
“Is your company building listed? Or is it made of stone or constructed before 1920? Buildings are listed because they’re of special architectural or historic interest, so if you have a fire or any other reason to claim, you’d need special permission before you can rebuild or repair it – this could prove expensive both in time and money.
“It also costs more to build with stone, so it costs more to repair and maintain stonework. And if your property was built before 1920, buildings constructed then were made to last, so better quality will mean higher costs if you need to make any repairs.
“Maybe you’ve never had an actual valuation and the sums insured are based on guess work – get them checked to make sure, and update your valuations regularly. Or have you extended, altered or refurbished the property? What about the sums insured? Did you get them amended at the same time?
“What if your building is in a location that’s difficult to access? Just think how complicated a rebuild could become and how much more expensive it could make the project.
“The biggest mistake many owners make though is to base the building sum insured on the market value of the property. This is very dangerous as the two sums are completely unrelated and can be significantly different.
“No two buildings insurance quotes are the same as we assess each building individually – make sure your cover meets your own specific needs.”
