Everyone is aware of the harsh reality of bushfires, and how it can pose a significant threat to homes, businesses, and livelihoods. While obtaining insurance may seem like a safety net, the danger lies in underestimating the true value of your property and belongings. Let’s dive into the specifics of it.
Underinsurance occurs when the coverage amount falls short of the actual replacement or rebuilding or reoperating costs which can be easily overlooked. Here are some examples and how you can ensure that your policy covers the “whole nine yards” of your business.
- Inadequate cover for Business Interruption: in our part one of the bushfire series, we delved into the importance of BI insurance, you can find the full article here.
- Underdeclared values for property assets: ensure to correctly evaluate and declare the value of your assets to guarantee they are not excluded or underrepresented in the insurance policy.
- Inadequate or no cover for equipment or vehicles: making sure they are all declared.
- Incorrect calculations of insurance sum: in the context of bushfire, always account for clean-up and demolition costs.
- Increased costs of rebuilding due to inflation and BAL code (level of bush fire resistant construction required for the building): Regularly reassess the value of your property and possessions. Keeping your insurance coverage up-to-date ensures that you are adequately protected against the evolving market and replacement costs.
While we cannot control the fury of bushfires, businesses must go beyond traditional risk management practices. Adequate insurance coverage tailored to the unique challenges of bushfire-prone areas will safeguard business resilience continuity and long-term success.
We can help, get in touch today!