In this article written by Alex Wright for Risk & Insurance, he shares how inflation and supply chain issues are driving up replacement costs, causing many businesses to be underinsured. Inflation, spurred by factors like labor shortages and global conflicts, has significantly increased the cost of materials and repairs. Businesses also face higher costs from supply chain disruptions due to the pandemic and other global events. Construction material prices went up by 12.5% from 2021 to 2023, and vehicle repair costs surged by 23% in one year. Brokers and underwriters need to stay updated on these economic changes and communicate them to clients to prevent surprises and ensure proper coverage. Regularly reviewing and updating insurance policies and values is crucial for businesses to avoid financial risks. Read more: https://lnkd.in/gbfxAKBZ #Insurance #RiskManagement #Inflation #SupplyChain #Underinsurance #Construction #BusinessInsurance
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Underinsurance is a serious issue that the majority of businesses are unaware that they are affected by. A recent industry study conducted by Charterfields showed some worrying stats; 88% of locations that they surveyed were underinsured. 36% of locations that were surveyed showed building values underinsured by more than 50% 80% of locations surveyed showed plant and equipment were underinsured. 40% of locations surveyed showed plant and equipment values were underinsured by more than 50%. We are currently working with a concerning number of businesses who have not reviewed their values at risk for a number of years, and allowed things to tick over without having received proper advice around the escalating costs associated with reinstating their property in the event of a claim. How many businesses are fully aware of the Average clause that will apply in the event of a claim? If the insured property is determined to be undervalued at the time of a claim, the insurance company will only pay a proportionate amount of the claim based on the ratio of the insured value to the actual value of the property. This means that the policyholder will bear a portion of the loss themselves which could be considerable. It is important that businesses regularly assess their values at risk, and if there has not been a formal survey carried out recently then it is essential to do so. We can arrange a review of all relevant sums insured, as well as arranging any necessary surveys to ensure that you can have confidence in your sums insured going forward. Bearing in mind the statistics noted above, this could be the difference between a claim being paid in full and not.... Further information in the article below, but please drop me a note if you wish to undertake a confidential review of your current arrangements.
Underinsurance can affect organisations of any size or sector and could pose a significant risk to your business if not addressed. In our latest article, we explore the rising threat of #underinsurance, how it occurs, the problems it can cause, and the relevance of the 'Average Clause'. Click the link below to read more ⬇️ https://okt.to/eXvfwR #RiskManagement #Valuations
Underinsurance: A Wake-Up Call for Policyholders
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Chartered Insurance Broker providing Insurance & Risk Management advice to businesses of all sizes to help them mitigate their risks
🔍 Are you aware of the risks of underinsurance? In today's uncertain world, many individuals and businesses overlook the importance of adequate insurance coverage. Underinsurance can leave us vulnerable to financial hardships and devastating consequences. Let's prioritize proper coverage and protect ourselves from potential risks. 💪 #insurance #underinsurance #riskmanagement #financialprotection https://lnkd.in/eceuPYF7
Underinsurance can affect organisations of any size or sector and could pose a significant risk to your business if not addressed. In our latest article, we explore the rising threat of #underinsurance, how it occurs, the problems it can cause, and the relevance of the 'Average Clause'. Click the link below to read more ⬇️ https://okt.to/eXvfwR #RiskManagement #Valuations
Underinsurance: A Wake-Up Call for Policyholders
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Underinsurance is a major issue facing businesses just now. If your current broker is not discussing this with you and providing potential solutions, Gallagher can assist by arranging extremely competitively priced, desk top insurance valuations in conjunction with RebuildCostASSESSMENT.com
With #underinsurance continuing to remain a significant risk for businesses across the UK, you must consider how this might affect your organisation. With this in mind, read our article to understand what underinsurance is, how it occurs, and the problems it could cause. Check it out here ➡️ https://bit.ly/3VVzLP0 #RiskManagement #Valuations
Underinsurance: A Wake-Up Call for Policyholders | Gallagher UK
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Increased claims, inflation and higher reinsurance costs will likely drive further insurance rate increases next year, and most buyers should expect single-digit increases, similar to the rate hikes they saw this year, according to a report from Woodruff Sawyer & Co. In its annual P&C Looking Ahead Guide released Tuesday, the San Francisco-based brokerage said the hardening market that began in 2018 peaked in 2020, but buyers have continued to see increases in most major lines. Easing inflation and other factors, though, should eventually lead to more moderation in rates, the report said… (continued): #businessinsurance
Single-digit rate hikes likely in 2024: Report - Business Insurance
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With #underinsurance remaining a substantial risk for businesses across the UK, it's vital to contemplate how this could impact your organisation. With this in mind, read our article to understand what underinsurance is, how it occurs, and the problems it could cause. Check it out here ➡️ https://bit.ly/4b22aHk #RiskManagement #Valuations
Underinsurance: A Wake-Up Call for Policyholders
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Current economic circumstances cause there to be an unusually high risk of a business being underinsured. Have a look at our most recent tips article on mitigating these risks. #Insurance #PetrelaWinter #PWA
Tips for Avoiding Underinsurance
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With #underinsurance continuing to remain a significant risk for businesses across the UK, you must consider how this might affect your organisation. With this in mind, read our article to understand what underinsurance is, how it occurs, and the problems it could cause. Check it out here ➡️ https://bit.ly/3VVzLP0 #RiskManagement #Valuations
Underinsurance: A Wake-Up Call for Policyholders | Gallagher UK
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Underinsurance continues to be a significant exposure for a large percentage of businesses / policyholders in the U.K. Please read the attached article and if you have any questions, I am happy to talk through the best approach to protect your business. #Underinsurance #AJG #Valuations
Underinsurance can affect organisations of any size or sector and could pose a significant risk to your business if not addressed. In our latest article, we explore the rising threat of #underinsurance, how it occurs, the problems it can cause, and the relevance of the 'Average Clause'. Click the link below to read more ⬇️ https://okt.to/eXvfwR #RiskManagement #Valuations
Underinsurance: A Wake-Up Call for Policyholders
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Development Executive at Gallagher assisting local and global companies review their total cost of risk including Risk Management and insurance spend.
🔍 Underinsurance: Are You Fully Protected? Underinsurance occurs when your coverage limits are too low, leaving you financially exposed. 🛡️ Why It Matters: 1. Financial Risk: Unexpected costs can exceed your savings. 2. Peace of Mind: Adequate coverage reduces stress. 3. Asset Protection: Ensure your valuables are properly insured. What to Do: Assess Your Needs: Regularly review your assets and potential risks. Consult a Professional: Get advice to identify coverage gaps. Upgrade Policies: Adjust coverage limits to match asset values. 🔑 Take Action: Review your insurance today to safeguard your future. #Insurance #Underinsurance #FinancialPlanning #RiskManagement
Underinsurance can affect organisations of any size or sector and could pose a significant risk to your business if not addressed. In our latest article, we explore the rising threat of #underinsurance, how it occurs, the problems it can cause, and the relevance of the 'Average Clause'. Click the link below to read more ⬇️ https://okt.to/eXvfwR #RiskManagement #Valuations
Underinsurance: A Wake-Up Call for Policyholders
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One of the many important exposures to a business today !!
Underinsurance can affect organisations of any size or sector and could pose a significant risk to your business if not addressed. In our latest article, we explore the rising threat of #underinsurance, how it occurs, the problems it can cause, and the relevance of the 'Average Clause'. Click the link below to read more ⬇️ https://okt.to/eXvfwR #RiskManagement #Valuations
Underinsurance: A Wake-Up Call for Policyholders
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