Many SME's make the common mistake of under-insuring to keep premiums down and then learn the hard way when a claim beckons.
Is under insuring the biggest mistake
Under insuring is a big mistake and can have devastating results.Cathy Taylor, Head of Commercial Underwriting and Operations at Ageas explains why…
The biggest mistake that we find that SME’s make is actually being able to get their sums insured correct so that they’ve got the right amount insured to protect their property and their liability actually.
For example, if you’ve got a property or a business, what we need to make sure is that the buildings are insured for the correct amount and quite often some insurers will actually go by what the market value of that building is.
The reality is that what you have to insure is the actual rebuilding costs of that building and quite often they’re quite dramatically different.
Often the market value could be more, so you might be spending premium that you don’t need to spend, but we find more commonly that actually there’s an under insurance of the correct sums insured.
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