Protecting your Building, Business Contents and Stock
Underinsurance is a major risk for Australian small businesses. In fact, only 63% of Australian small to medium sized businesses have adequate insurance*.
A major factor contributing to this risk of underinsurance is when business insurance cover is not updated to accurately account for increased value of business property due to renovations, enhancements or rising building costs.
Insurance cover that is not updated annually also exposes a business to underinsurance by failing to recognise any increase in increased stock levels or increases in business turnover.
A business renews it's property insurance cover each year for 5 years without updating the amount insured.
Under the scenario shown above if the business owner suffered a total loss the insurance policy would not cover the total costs of replacement. Could you afford the gap?
Building reinstatement and replacement costs change over time as do stock values. GIO strongly recommends business owners review their sum insured each year.
To help you maintain adequate business insurance protection GIO applies an indexed increase to your sums insured under the Fire & Other Damage cover in the GIO Business Insurance Policy.
- This means the amount of your cover should automatically increase each year to help keep up with the impact of inflation and the costs of rebuilding, repair and replacement.
- This indexed increase applies to your nominated sums insured and will be reflected in your annual premium. As your premium increases so does your cover.
You must still review your sums insured regularly to take account of your individual circumstances - changes in your business, renovations, increased stock levels etc. GIO recommends you seek assistance from an expert building valuation consultant.
For more details on how to avoid underinsurance call GIO on 13 10 10.
Important note:
The application of this condition by GIO could mean that you receive less than the full value of your loss.
Important: Business Insurance is issued by GIO General Ltd ABN 22 002 861 583. Please read the Product Disclosure Statement before making a decision regarding this product. Call us for a copy on 13 10 10.
*Insurance Council of Australia, 'Non-Insurance in the Small to Medium sized Enterprise Sector' December 2008.
**An underinsurance condition applies to Policy Sections: 1, 2 and 11 of the GIO Business Insurance Policy.
