Underinsurance can result in inadequate claims settlements, dissatisfied customers and, potentially, litigation for brokers who have not taken steps to prevent it. With customers typically responsible for specifying their own sums insured, brokers can often feel powerless to combat underinsurance.
However, brokers should see the resolution of underinsurance as an opportunity to differentiate themselves from the competition.
This article focuses on four top tips to remove underinsurance from your book of business.
• Educating your customers on the Total Cost of Risk.
• Encouraging regular valuations.
• Business interruption.
• Helping with business continuity planning.