96% OF COMMERCIAL BUILDINGS IN EAST MIDLANDS UNDERINSURED

A new survey has shown that 96% of business premises across the East Midlands are underinsured, with an average 73% increase of the existing sum insured required to ensure adequate insurance cover.*

Specialist insurance valuers Barrett Corp & Harrington Ltd, who carried out the study over a five year period, found the problem to be widespread across the region. Commercial premises including factories, workshops, warehouses, offices, shops and hotels were all affected.

The findings highlight an important issue that independent insurance broking and risk managing firm Russell Scanlan believes is recession related. The East Midlands-based company warns that underinsurance is putting regional businesses in a potentially challenging situation should they need to claim through their current policy for loss or damage.

As Mike Dickinson, Development Director at Russell Scanlan, explained: “Times are tough, and many people believe that because of the sluggish economy, their property is unlikely to have gone up in value. That’s actually not the issue as insurance policies are concerned with the re-building cost of the property rather than the market value which can, in many cases, be very different figures.

“We’ve dealt with a number of cases recently where firms in the East Midlands have been prejudiced when they have had a claim because their commercial property insurance cover falls well short of the mark. It’s important that we highlight this issue to help other businesses avoid the same fate.

“Yes, an insurance review may, in the short term, lead to a slight increase in premium and the need for a professional valuation. But that’s a small price to pay in the long term. We believe it’s simply not worth businesses taking that risk in this difficult climate.”

Barrett Corp & Harrington Ltd’s survey statistics cover the period just prior to the 2007 recession through to the present day. The Market Bosworth firm uncovered the extent of the problem during their day to day assessments of building insurance valuations.

Roger Corp, Director at Barrett Corp & Harrington Ltd, added: “Underinsurance is a major issue in the UK. The degree of underinsurance highlighted by our statistics can, unfortunately, lead to financial disaster for a business – impacting on shareholders, directors, employees, their families, suppliers and other contacts.

“By regularly reviewing the value of their property assets, businesses will be far better placed to manage the risks and ensure they are adequately protected if the worst were to happen.”

ENDS

For further press information please contact Clare Farley or Isabel Jones at Eden PR on 0115 958 8850 or clare@edenpr.co.uk / isabel@edenpr.co.uk

Notes to Editors

Russell Scanlan was established in Nottingham in 1881 by Patrick Scanlan, where it has been based ever since. The company’s Nottingham office is located on Wellington Circus in the City centre. Over the years, Russell Scanlan has developed and prospered, and following a successful management buy out in 2007, it expanded into Leicester, opening an office two years later on the outskirts of the City in the Desford area. The firm currently employs 31 staff across its two offices.

2012 is a landmark year for Russell Scanlan as it celebrates its 130th anniversary year. The firm has a rich heritage, enviable reputation, and is still fiercely independent with a strong presence across the East Midlands and beyond. To mark this milestone, Russell Scanlan will be holding a series of events and activities throughout the year to celebrate with its partners, clients and business associates. Keep an eye on the website - www.russellscanlan.com - to find out more.

Barrett Corp & Harrington Ltd (BCH) operates from Market Bosworth in Leicestershire and offers combined experience in insurance, loss adjusting and surveying. The firm, established in 2006, specialises in providing building insurance valuations or reinstatement cost assessments for all types of commercial and residential buildings, no matter how large or small, including listed and historic buildings, across the UK.

BCH is a preferred supplier to many insurance companies, brokers and individual property owners and is able to offer a unique perspective into the valuation of buildings for insurance purposes, and at very competitive prices.