The Hidden Cost of Being Underinsured
Having property insurance does not automatically mean a business is adequately protected. The real question is whether the insured value reflects the actual cost of rebuilding and replacing essential assets.
According to the Swiss Re Institute, natural catastrophes caused an estimated $100 billion in global economic losses in the first half of 2026, with only 42% covered by insurance. This highlights the substantial financial gap that can remain when disasters strike (Source)
For businesses, underinsurance can create additional pressure when recovering from a major loss. Rebuilding premises, replacing equipment and restoring stock can require substantial investment. If operations are also disrupted, lost income and continuing expenses may further affect financial stability.
Property Insurance and Business Interruption Insurance address different aspects of this exposure:
- Property coverage protects insured physical assets
- Business Interruption coverage can help cover eligible financial losses following an insured event, subject to the policy terms, conditions, limits and exclusions.
Regularly reviewing insured values and business interruption needs is an important part of managing risk.
At Wide Plains Insurance Brokers, we help businesses assess their exposures and review their insurance arrangements to support more informed decisions.
Talk to Wide Plains:
Email: Â [email protected]
Phone: 04 711 424 / 5
Mobile: 76 555 193
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