Valuation reduces business risks

Many business owners assume that their insurance is properly arranged. Yet in practice, it often turns out that there is room for improvement. More than half of Dutch business owners are paying either too much or too little in premiums. The reason? The sum insured on the policy no longer reflects the actual value of the business premises or the contents.

Due to inflation in recent years, the cost of construction, materials and goods has risen significantly. This means that the reconstruction or replacement value of your possessions today may be considerably higher than it was when you took out the insurance. If the sum insured is insufficient, you risk being underinsured. And that can have serious financial consequences.

Imagine your business is hit by a fire. You are insured, but the declared value of your inventory or premises turns out to be insufficient to repair or replace everything. In the best-case scenario, you will receive the maximum insured amount, but this may only cover part of the actual costs. With all the consequences that entails for the continuity of your business.

The solution is simpler than is often thought: an up-to-date valuation report. This document sets out the current value of your building, fixtures and fittings, contents and, where applicable, tenants’ improvements. These agreed figures are legally binding on the insurer. This means: no disputes over the value in the event of a claim, faster settlement and clarity from the outset.