Are you underinsured?

When the worst happens, you want to know you’re completely covered.

A vast majority of business owners are underinsured and shockingly they don’t even know about it. This is because many insurance companies provide policies which have an ‘average clause’. The average clause reduces the amount an insurer pays out on a claim because the sum insured is lower than the value of your property.

For example, a fire causes $2 million of partial damage to your business premises.

The building is insured for $6 million; however at the time of the claim, the value of the building is actually $12 million.

Under the averages clause, your payout would be calculated as follows:

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  • This shows the amount paid out is $1 million, leaving you $1 million out of pocket.
  • Guild Insurance’s Reinstatement Plus cover ensures you don’t suffer any personal losses when making a claim.
  • Reinstatement Plus provides two main policy benefits:

Claims for total loss

The policy provides a ‘safety net’ cover of 50%. This means that if the sums insured for buildings or business contents prove to be inadequate following a total loss, Guild automatically increases each of the sums insured by 50%, reducing the possibility of any uninsured loss.

Claims for partial loss

Guild provides full cover for any partial loss claim you may make so you don’t incur personal losses from claiming.

Under our previous example, the claimant would receive the full $2 million payout.

Reinstatement Plus is a significant policy benefit not widely available in the insurance market. It’s one of the reasons why Guild has been at the forefront of insurance in Australia for over 60 years.

You can also speak with a Guild account manager on 1800 810 213.

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