The starting gun for our exit from the European Union has only just been sounded today and we already seem to be drowning in what ifs and what next’s.
One thing that businesses need to consider immediately with regard to their insurance on this subject is their valuation of their stock and machinery.
If this stock or machinery, tools and other business equipment is sourced from outside the UK then it is very likely that the replacement cost of these items has risen sharply in the last few months with the collapse in the value of the pound. As our currency has dropped by around 20% against the Dollar and 11% against the Euro in the last nine months it is fair to assume that any sum insured covering these items may now be up to 20% too low.
This would lead to a situation of underinsurance and a potential reduction in payment of any claim or, possibly worse, a rejection of the claim due to misrepresentation of the risk.
Please consider the adequacy of the valuation of your insured assets and if you need advice on this please do get in touch with me.