Are you underinsured?
Make sure you have the necessary level of protection. It makes sense to protect your business in both good and bad times because it is likely one of your most valuable assets. Inadequate cash flow is the main cause of small business failure in Australia. The correct amount of insurance can make all the difference in this situation by ensuring that your company keeps running smoothly even if the unexpected occurs.
The danger of inadequate insurance.
Unfortunately, 1 in 10 insured Australian firms do not have enough protection to safeguard themselves against interruptions in business, legal liabilities, or loss or damage to their assets. This is known as “underinsurance,” and it significantly raises the possibility that a company will have to shut down if something goes wrong. Why are so many companies underinsured, then?
Some business owners are motivated by inexpensive rates and neglect to ensure they are sufficiently insured following an insurable event. As a result, the amount insured could not be sufficient to cover losses; alternatively, the policy’s conditions might place a cap on the amount that can be recovered.
It’s also typical for business owners to underestimate the expenses of replacing or restoring their company’s assets following a disastrous incident like a fire or storm. The owners will be underinsured and may incur significant out-of-pocket costs if they need to file a claim if the sum insured does not reflect a current reinstatement or replacement cost.
How can you tell if you have inadequate insurance?
If any of the following apply to you, you run the danger of being underinsured:
- You haven’t updated your insurance coverage to account for the expansion of your business.
- Your insurance is calculated using an out-of-date replacement cost for your company’s property.
- You have insurance to cover damage to your company’s property, but you haven’t thought about other types of financial loss like management responsibility and business interruption.
How can Wymark Insurance Brokers assist?
Sorting out your insurance coverage frequently falls to the bottom of your never-ending must-do list when you own a business. Here is where we can be of assistance. We perform the labour-intensive task of analysing your insurance plan, modifying your coverage as your company changes, and providing you with the assurance that your company is adequately protected.
Contact a team member today to discuss.