GMC member Gallagher Geelong (previously Tresidder Insurance Brokers) shares an update about asset insurance in the midst of variable international trading terms:
With the recent proposed changes to USA tariffs, international trading terms have been subject to variation. Combined with exchange rate fluctuations, now is the time for a quick yet diligent review of your asset register against the new replacement values in line with current market conditions. For example, a major downward shift in the Australian dollar can adversely increase the purchase price of equipment manufactured overseas.
Commercial insurance policies always provide “new for old” replacement and reinstatement conditions. Most commercial insurance wordings will allow for a small margin of error in sums insured not being 100% accurate to the current “new for old” values.
In recent months our client reviews of current values have consistently identified the need to increase asset sums insured, in most cases by more than 20%, largely due to exchange rate and higher freight costs.
As we say in the insurance game, “you can’t change the cover after a loss”. It’s important to regularly review your assets and the associated coverage so that you are adequately prepared in the event of a loss.
GMC members stay tuned for an upcoming workshop in September where Gallagher will guide through the practical steps you can take to effectively review and update your asset registers.