At a glance
- We've partnered with Insurance Business to bring you a series of 12 SME articles.
- Many SMEs with business interruption cover could end up underinsured due to a common miscalculation of total sum insured.
- The Chartered Institute of Loss Adjusters (CILA) found that up to 43% of business interruption policies were underinsured.
Research from the Chartered Institute of Loss Adjusters (CILA) found that up to 43% of business interruption policies were underinsured by an average of 53%.
While business interruption cover can be placed readily in the market, the changing dynamics of factors impacting gross profit needs fuller consideration.
“With the storm of just in time delivery, compressed supply chains and technological dependency, all of these key factors mean that your business interruption cover has to be correct, because if it’s not, it can mean the difference between you being in business, or not,” John Taylor, practice and proposition underwriting analyst, commented.
“This is why we are working with brokers and SMEs to get the sum insured correct before the incident, rather than after it.”
Click here to read the full article on Insurance Business.