Today’s challenges are creating an increased risk of underinsurance for UK business. We’re living through a difficult period in the UK’s economic history. The cost-of-living crisis comes at a time when we’re still dealing with the economic and socioeconomic effects of Covid-19, Brexit and the ongoing war in Ukraine. Simultaneously, we’re seeing inflation rising, increasing fuel and energy prices, and this is having a significant impact across everything including building materials and supply chain issues. All of this is impacting the prices we pay and how long it takes for goods and materials to get to where they’re needed.

From Aviva’s modelled data, they estimate that 50% of UK businesses are underinsured to some degree, and 40% of policies with buildings have at least one premise suspected to be underinsured by 20%. Further data from over 4,800 property surveys that Barrett Corp & Harrington have carried out this year, more than 75% have been underinsured, with an average increase suggested at 53%. In addition, Charterfields note that 42% of plant and machinery locations are being underinsured by more than 50%.

How does this impact ceda members and businesses? Get in contact with qualified professionals Darren Cronin or Dan Wilson from The Cronin Insurance Consultancy Ltd to start a conversation as to how we provide solutions to our clients, to ensure that your business and assets remain protected against underinsurance and the consequences of the Average condition which is present in all commercial insurance policies on 0330 055 2761.

Alternatively if you would wish for one of our personnel to contact you direct, please complete the form via: Click here.