Getting your sums insured right is critical if you have to make a claim because these figures underpin your ability to recover from an issue with your business ‒ so it’s worth taking the time to ensure they are accurate. These tips will help you with the essential requirements.



Sum insured refers to the maximum amount your insurer will pay to replace your business property and assets, including buildings, contents and equipment, if they are damaged or destroyed.

What you need to check

Keep assessments of your commercial property value and assets up to date so you can renegotiate the insurance on your sums insured at renewal.



Co-insurance terms come into effect if the amount the property is insured for is less than its value. The penalty kicks in if you have to claim. You will not only be short on the insured value, the insurer will only reimburse the proportion of this figure you have self-insured for.

What you need to check

Obtain updated valuations on property at least every three years so that you are insuring for the true replacement cost, not market value or accounting depreciated value.



Insuring your business property for an agreed value avoids the co-insurance issue, provided you meet certain requirements.

What you need to check

This agreed value will apply for the term of your policy and you will need to prepare an updated statement of values before your current policy expires. Depreciation of the property should be taken into account.



Our hotel insurance experts can provide invaluable guidance and advice to help you get your sums insured right. We are here to help.

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