As an optician, you could be putting yourself at risk when your business property is not insured for the correct amount.

Under-insuring business property and equipment is a common mistake, but it can cause major problems, leaving your practise vulnerable should you need to make a claim.

What is underinsurance?

Underinsurance means that something has been insured for less than it’s true value. If this is the case and you suffer a loss, your insurer may scale down any losses leaving you out of pocket.

For example, equipment with a replacement value of £20,000, but insured for £5,000 is 75% underinsured. If the equipment is damaged, and the cost of repairs is £1,000, insurers could reduce the claim by 75%. This would mean you would only receive a payment of £250, leaving you with a shortfall of £750.

As an optician, you could put your practise at huge risk of being penalised in the amount you are able to recover by not valuing your business property correctly.

At Infocus Opticians Insurance we advise all our customers to be proactive and assess all property values correctly in order to prepare for the worst. You don’t want to have to find out your practise is underinsured after you experience a major loss such as a security breach, flood or fire and need to make a claim.

What to insure

There are a number of key things to think about when you are considering what to have covered by your policy. These include;

• Building – How much would it cost to re-build your shop if it were destroyed?
• Stock value – How much would it cost to replace your stock?
• Professional equipment– How much would it cost to replace your testing equipment?
• Off-site equipment – If you conduct work as a locum, is your equipment covered?
• Shop fittings – How much would it cost to re-fit your shop?
• Furniture
• Displays

To help assess your property values correctly, why not download our example inventory.

For specialist advice, contact us to find out more.

Written by: admin