OREANDA-NEWS. Aviva has launched a guide to help businesses understand the cost implications of not having the right amount of insurance and explain some of the times in the life of a business when the insurance needs might have changed and need reviewing.

Aviva’s SME Pulse earlier this year found 1 in 5 SMEs were not confident that they have the right insurance cover** and that’s a situation that could leave them out of pocket. For example, looking at a sample of clients where underinsurance was identified Aviva’s survey team found 177 cases where customers had been underinsured on average, by ?486,000.***

Angus Eaton, managing director of commercial insurance at Aviva, said: “Insurance provides valuable protection. However, it is important to make sure you regularly assess what you need because finding out after an event that you don’t have the right insurance is too late. Being underinsured could leave you potentially having to pay the difference between the actual cost of the loss and what was covered by insurance, from your own pocket. Depending on the amount you were underinsured by that could run into hundreds or even thousands of pounds – sums that might mean the difference between surviving or having to close down.

“We have created our guide on underinsurance to share some simple tips and advice, and highlight some of the key times in the life of a business when your insurance needs might have changed. If, when you have read it, you have any concerns about your insurance requirements I would recommend you get professional advice to make sure you are fully protected.”

Aviva has put together a top ten list of examples where your insurance needs might have changed:
 
1. you haven’t had your property professionally valued for ‘insurance purposes’ in the last 3 years
2. you have altered or extended the property
3. your insurance cover has been based on the market value of the building instead of what it would cost to rebuild your property
4. you haven’t factored in costs for gates/fences, car parking areas in your calculations
5. your property is a listed building (because the time and cost of repairs/rebuilds are likely to be far greater)
6. you haven’t factored in the costs of professional fees such as an architect or surveyor
7. you haven’t factored in costs such as site clearance or access – particularly where your business might need, say, a crane to help with remedial work
8. you are carrying more stock now than you did when you took out your insurance policy
9. you are now VAT registered
10. you have some new plant or equipment that you haven’t told your broker/insurer about.

It is important to get professional help to make sure you have the right amount of insurance cover for your business.