Ensuring your sum insured stands at a realistic figure is an area all businesses should be concerned with, particularly relating to the replacement of machinery. Machinery can be rendered useless through a variety of risks, fire, flood and theft being the most obvious so it needs to be properly protected.
Having carried out an inventory, the true replacement cost of their machinery alone was a little over £6 million. Had they suffered a fire or flood, the damage would have been far more than an interruption to their business.
Castlemead knows that the cost of replacing machinery has gone up substantially due to currency fluctuations and that the previously healthy second hand market for many machines that enabled replacement costs to be reduced is no longer what it used to be as, due to the high prices of scrap metal, most have been “recycled”!.
Castlemead Insurance Brokers visited a company recently where their total sum insured stood at £1.7 million.
Having carried out an inventory, the true replacement cost of their machinery alone was a little over £6 million. Had they suffered a fire or flood, the damage would have been far more than an interruption to their business.Increasing the sum insured may not be as costly as you might think and at Castlemead we provide a breakdown of how your insurance premium is made up so that you can see at a glance what effect an increase would have. As part of our annual review we also monitor the sums insured to ensure that you are adequately covered this year and every year.
If you would like help, please get in touch with Castlemead.