Firms warned over risk of being under-insured

The fall in sterling seen in the wake of the Brexit vote could leave many businesses at risk of being under-insured, a Scottish broker has warned.

With the pound down by around 15 per cent against the euro since the referendum, businesses that import goods priced in a foreign currency could be inadequately covered because the sum insured will be valued in sterling. A company purchasing machinery or stockcosting€250,000needed to insure it for approximately £172,000 in 2015 but that figure has now risen to £217,000.

Stephen Boyd, managing director of Towergate Insurance which has offices across the Central Belt, warned: “Underinsurance can have a devastating effect on businesses.”

He said firms that are underinsured are likely to see the size of any claim settlement reduced and strongly urged businesses to check sums insured and limits of liability so that adequate cover is in place.