Is your practice underinsured?
Underinsurance is a common problem for businesses, as it’s hard to identify the right level of cover for each surgery or practice.
Most policies tend to provide Employers Liability, Public Liability, Money and Business Interruption cover along with essential cover for Buildings and Contents.
Buildings Cover
When deciding on the building sum insured amount, it’s important to note market value and rebuild value are not the same. The rebuild value/reinstatement cost for any business should include things like pipes, drains, walls, car parks, outbuildings etc. This will allow for a sufficient buildings cover to be in place. Some business owners may not realise if any refurbishments are made to the premises, the building sum insured amount may need to be reviewed.
Contents Cover
The contents sum insured amount is how much it would cost for all of the contents to be replaced. In order to make sure the correct cover is in place, business owners can use a contents calculator to review the contents in each room. This is a quick and easy tool which will ensure sufficient cover is in place. Another way to complete an inventory is by going through any invoices/receipts for business equipment previously brought. This will provide an adequate figure to use for the contents sum insured amount.
Business Interruption and Terrorism Cover
Terrorism Cover can help provide financial protection when a business is affected by an act of terrorism. This means things like business equipment; income and business premises can be covered. When considering the correct amount of cover for Business Interruption, the sums insured needs to represent the expected gross profit that is expected over the period of time in which the business is closed. It is also important to correctly assess the indemnity period as both these factors can result in your business being underinsured.
5 helpful tips when arranging your practice insurance
- 1. Look at each room of the practice individually
- 2. Would you take it with you if you moved premises?
- 3. How much would each item cost to replace?
- 4. Have you included your fixed contents?
- 5. Create a record of equipment and contents and update it monthly
If you want to speak to us about your practice insurance, call us on
and one of our team will be happy to help.
Calls may be recorded for use in quality management, training and support.
