43% of small businesses are underinsured

Anton Hilton • December 23, 2016

RUNNING A SMALL BUSINESS? ARE YOU SURE YOU HAVE ADEQUATE INSURANCE?

A recent study has revealed 43% of small businesses do not have adequate storm cover.

With another wet winter predicted, it is important small businesses review their existing insurance arrangements and there is no better way of doing this than contacting an insurance broker.

WHAT IS “UNDERINSURANCE”?

Example of how underinsurance can affect an insurance claim:

£100,000.00 is the rebuild cost of the property. The property is only insured for £50,000.00 (50%). A claim happens valued at £10,000.00. How much will you receive?

£10,000.00 because this is still within what the property is insured for
Nothing
£5,000.00

The answers is: C. Because the property is only insured for 50% of its value, the insurance company will only pay 50% of the claim. The insurance jargon for this is the “application of average”.

In extreme cases, underinsurance may void the policy and leave you with nothing.

Extremely high levels of underinsurance exist in the small business sector, with underinsurance for business interruption being the most prevalent. Business interruption is fundamental to the protection of a small business and is often overlooked or not properly understood when buying on line.

THE ANSWER

Contact P Jenkins and Co for a free and independent review of your small business insurance requirements. You might even save some money!

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The UK government recently increased the age for claiming old age pension. This was on the basis of people living longer and, perhaps at face value, not unreasonable. But was it a trick to save the government money? Figures published recently have shown life expectancy has actually started to decline. The increase in life expectancy was probably a 'blip' from the war generation and the immediate generation thereafter. People ate less, not by choice, but due to rationing. Walking was common and there was a complete absence of computer and video games. Children played out and exercised naturally. The Clean Air Act was passed. Today the situation is very different. Food has been plentiful for decades and computers and video games have been around since the mid 1980s. Vehicles pollute our towns and cities. No 'great smog' of yesteryear but the pollution is there, invisible.

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By Anton Hilton • December 23, 2016
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