UK Businesses at Risk of Being Under-Insured

The following article was produced by Premierline Direct, who are part of the Global Allianz Group providers of cover to a wide range of industries from shops and offices to hotels and manufacturing, tailoring its insurance packages to meet the diverse needs of each business.

UK companies are leaving themselves open to significant and unnecessary losses by failing to provide insurers with sufficient information around risk exposure, according to recent findings.

Specialist research firm, Mactavish, conducted a study of commercial risk in association with professional services firm, PricewaterhouseCoopers. The poll, published on March 14 this year, was based on consultations with over 600 UK companies, more than 100 insurers and brokers and detailed case analysis.

The report reveals that some UK businesses, medium-sized companies in particular, are taking on more unnecessary risk by masking their real insurance requirements in an attempt to cut costs and protect revenues. This is particularly alarming given the vital role of insurance as a financial safeguard in these uncertain times.

This has resulted in numerous businesses being left with insufficient cover, making them vulnerable in the event of a large loss and in some cases disputes with insurers over pay-outs.

Despite rising insurance costs it remains essential that UK businesses make their insurers fully aware of any activities and hazards faced by the business at the time of taking out a policy and regularly update their insurance information. Make sure you inform your insurer if you’re planning the following changes: 

Minor Building Alterations

It is important to let your insurer know if you plan any alterations to the building you have insured, including extensions and new security systems. Often security systems must meet the quality standards set by your insurer and failure to meet these standards could invalidate your policy.  Discuss any planned alterations with your insurer before you make any changes.

Expansion

If your business goes through a period of growth it is vitally important to contact your insurer to inform them of any extra staff you’ve taken on, any additional services you’re offering, or any new equipment or tools you have bought. If the value of your contents or stock also increases, you need to check with your insurer that you are sufficiently covered.

Claims professionals expect that a large number of companies have insufficient insurance cover. Don’t be a number – review the procedure you use to arrange insurance thoroughly; have adequate discussions with insurers and brokers regarding coverage and enjoy peace of mind.

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