Is my business less protected against inflation?
Is my business less protected against inflation? Today it is clear to everyone that we are suffering from runaway inflation. If you ask any business owner, what is inflation? they will surely answer that it is the increase in the costs of goods and services. A variation that is expressed as a percentage.
Entrepreneurs know this because inflation has caused the costs of everything, the raw materials, and the services you need, to rise. But inflation also affects companies’ insurance coverage. Because, for example, coverage for the structure of an insured building and its contents – tools, equipment, furniture, storage – is calculated based on the cost of its reconstruction or replacement.
The same goes for the cost of a business liability lawsuit. Although it is not directly linked to inflation, it does affect it.
It is best to contact your insurance agent and update coverages to current inflation rates. Because if your company’s building suffers a total loss, the coverage may be insufficient and you could be forced to pay a huge amount of money to repair it or write off the investment.
Some policies have an inflation protection clause. If you do, ask your agent how it protects you under current levels. It is best to review the terms and conditions of your coverage in the current inflationary environment and establish whether its limits are adequate.
Do not overlook that at Univista Insurance you can find the cheapest commercial insurance package in Florida, which will take into account every potential risk, including inflation. Is my business less protected against inflation?