Sheffield broker’s advice to avoid underinsurance

12th April 2023

Local broker advice to tackle underinsurance

Sheffield broker’s advice to avoid underinsurance 

Sheffield broker IFM Insurance is urging local firms to ensure their insurance policy is fit for purpose to avoid the threat of underinsurance.

High inflation, supply chain disruption and labour shortages are impacting the amount local businesses need to insure themselves.  What’s more, many firms have already reduced, or have considered reducing their insurance cover over the last year.  Sadly, this can leave them exposed to considerable risk and face the threat of being underinsured.

IFM top tips to combat underinsurance:

• Meet with your broker well before your next renewal to uncover whether your business insurance is providing the right protection.
• Ensure replacement cost estimates for buildings, contents, equipment and business interruption are set at the appropriate coverage levels.
• Conduct regular, accurate valuations of buildings and contents using a professional valuer.
• Consider how any inflationary increase could affect the sum insured. Although most policies are index-linked, an increase in the cost of building materials could directly impact on rebuilding costs.

Jamie Harvey, a director at IFM Insurance said: “Understandably, the cost of living crisis is having a major impact on local firms. Rising costs, staff shortages and supply chain issues are placing real economic strain on the way firms are able to trade.  That’s why it is vital for local firms to ensure their assets are valued correctly so that in the event of a claim their policy will respond”.