Underinsuring is a risky game – so risky in fact it’s not worth taking part. All too often, shortcuts are taken and bad advice is given when it comes to Commercial Building Insurance. It may seem like a tempting idea for a minute, to underinsure your buildings considering the property market but have you really factored in the potential cost?
Covering buildings
If you are insuring more than one property, are you looking close enough at your Commercial Buildings Insurance? It is important to remember to consider the needs of each individual property and the specific risks associated with each one. The last thing you want to happen is for something happen to two of your buildings but only one of them to have sufficient coverage. Also always be aware of the difference between the sale value and the rebuilding costs, while the value of property may be falling, the same can’t necessarily be said for the cost of materials or labor.
All-Risk-Policy/Peril Specific
It may be easy to assume that taking out one, large Commercial Buildings Insurance policy will cover you in any case imaginable – and generally the average small company will fare okay with an all-risk commercial buildings insurance policy. Consider however what is not included in an all-risk policy. Specific risks that are associated with your company’s location could be omitted from the policy, like flooding for example. A Peril-Specific policy will cover only the risks listed however if you are based in a high-risk area you can be sure of a clearly defined policy tailored to your company’s need.
Liability
You may be taking care to insure your buildings are covered, but what about what takes place inside or on your premises? When looking at your Commercial Buildings Insurance consider including liability cover, especially if you have tenants. If someone trips on a loose carpet or slips a wet floor, you want to be protected for when they come seeking compensation.
Commercial Buildings Insurance can seem like a long, detailed process; but those details are ultimately what can save your business in the event of an accident. The cost of underinsuring, in the long run, will always turn out to be greater than the cost of the right cover.
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