Sheffield broker warns local SMEs of the threat of underinsurance in a challenging economic environment

6th October 2022

Threat of underinsurance for small business

Sheffield broker warns local SMEs of the threat of underinsurance in a challenging economic environment
 
Sheffield broker IFM Insurance is urging local firms to ensure their insurance policy is fit for purpose to avoid the threat of underinsurance.
 
This follows research by insurer AVIVA showed that 32 of 502 SMEs surveyed in September 2022 did not consider inflation or supply chain issues when reviewing how to insure their business.  What’s more only 28 of SMEs have not reviewed their sums insured in the last year.
 
With rising inflation, insurance protecting a firms buildings and physical assets would need to be reviewed and updated at least annually to keep pace with the increased costs of replacements.

 
Jamie Harvey, a director at IFM Insurance said: “In these uncertain economic times, it’s vital for firms to speak with their broker to discuss how any inflationary increase could affect the sum insured and that their assets are valued correctly so that in the event of a claim your policy will respond’.