In August 2022, the inflation rate in Germany rose again to 7.9%, meaning it has remained well above 7% for half a year. Inflationary pressure remains high worldwide.
As you know, if values change, this also has an impact on your insurance coverage. The continuing increase in price development requires your attention!
CHECK DATA FOR UP-TO-DATENESS –
PROPERTY INSURANCE
Your property insurance policies contain various safeguards that protect you against underinsurance. However, it may still be necessary to adjust the sums agreed in your policies if, for example, you experience extreme price increases in your business segment, such as in the area of stored inventories or the operating equipment you use, or you expand your warehousing to buffer against delivery delays.
With regard to possible business interruptions triggered by property damage, it should be noted that these can currently be longer than usual due to possible delivery delays for required materials or waiting times for craftsmen. Since the interruption loss is only insured within the liability period, this should therefore be generously dimensioned.
Please ensure that the liability period of your business interruption insurance policies includes a sufficient time buffer.
CHECK YOUR COVERAGE AMOUNTS –
LIABILITY INSURANCE
Unlike your property insurance policies, which cover your own risk, liability insurance provides coverage against third-party claims for damages. Due to current inflation, the costs of claims settlement and asserted claims for damages are rising.
Due to higher claims costs, the need for higher coverage amounts is increasing. Therefore, it is important to review the coverage amounts of your business/product liability, product and recall cost insurances as well as professional liability insurance.
REVIEW OF THE SUMS INSURED –
TRANSPORT INSURANCE
If there have also been price increases in the products of your production, trade distribution program, we recommend that you check the currently specified sums insured / maximums of your existing transport policy to ensure that they are up to date.
The same principle applies to the procurement of raw materials, semi-finished and finished products, ingredients and all regularly replenished materials that your company needs and purchases for production.
If you have any questions, we will be happy to advise you comprehensively!
