The Right Sum Insured

• Step 1: Obtain insurance cover.
• Step 2: Ensure cover meets your needs.
• Step 3: Select & maintain the right Sum Insured.

We will work with you through each step. Here are some considerations:

Property:

Standard Cover - Depreciation needs to be deducted from the current cost.

Replacement Cover - Sums insured need to represent the current cost to replace the item. No deduction for depreciation.

Building - Insured value should reflect the current rebuilding value.

Considerations - Removal of debris and fees related to rebuilding (Architects, etc.).

Office Contents / Furniture / Plant / Machinery - Replacement value at current costs.

Business Interruptions:

Consideration needs to be given to the turnover/sales of the business, the ongoing expenses of the business unrelated to sales (loan repayment, rent and salaries) and the expected time it would take for the business to achieve the same volume of sales as was experienced right before the loss occurred. The calculation of a correct sum insured is particular to each business. Our underwriters will work through the equations with you to establish a realistic sum insured.

Liability:

The limit of the policy should be established to provide the protection should a third party take an action against you and damages are awarded against you. Legal fees are included in the cover. There is no correct policy limit, however, we can advise you on establishing a realistic policy cover.

Other Insurances:

Policies vary, therefore the best way for us to help you establish realistic sums insured is to meet with you and discuss your exposures. We encourage you to give us a call at (441) 298-HELP for more information.