Property Assets

• Buildings Covers the cost of rebuilding or replacing the property insured. This includes building fixtures and fittings, outbuildings, walls, gates, fences, yards, car parks, and underground Utility Company property which you are responsible to repair or maintain.
  
  

• Computers, Machinery, Plant and Equipment
  
  

• Stock
  
  

• All other Furniture and Contents items
   
    
  

The basis of settling claims for Stock is normally cost value. The profit earned from selling stock should be insured under a Loss of Income/Profits type cover.

The basis of settling a claim for all other property is the cost of reinstating or repairing at the time of a loss. The value insured should be sufficient to reinstate ,otherwise you run the risk of having both partial claims as well as total losses reduced in proportion with the amount of underinsurance. For example; value insured £100,000 reinstatement value £250,000 = 40% underinsurance. Claim value £50,000. Amount paid £20,000.

Being insured against the risks of fire, flood, storm, theft, malicious damage and terrorism shouldn't be the start and end of risk management. For example having electrical systems periodically checked particularly where there is heavy machinery and demand is high will reduce the risk of fires. If your premises are vulnerable to flood damage don't locate critical computer servers on the ground floor.

Having Disaster Recovery and Business Continuity plans in place can reduce the inconvenience and financial effects of a catastrophe and on occasions be the difference between survival and failure.