Business growth can leave your assets underinsured, even if your policy hasn’t changed. Underinsurance means your cover is insufficient for the value of your business assets. The sum insured is the maximum your insurer will pay for a claim. Avoiding underinsurance for your business assets starts with keeping insured values aligned with what you own and what it would cost to replace or rebuild today.Cover can fall behind as you buy equipment, increase stock, expand or face rising rebuilding costs. A figure that once seemed reasonable may no longer reflect the business you run today.This article explains how to review your sums insured after growth or purchases, estimate current replacement and rebuilding costs, and spot changes that can quietly create a shortfall. A clear review process helps you make informed decisions about protecting the assets your business relies on. Key Takeaways Review insured values after buying equipment, increasing stock, moving premises or changing how your business operates. Base building cover on the cost to rebuild, and contents cover on the cost to replace items new, rather than relying on past values. Check policy limits, exclusions and excesses alongside your asset values so you understand how they may affect a claim. A structured review of your business risks and cover can help identify where tailored Business Insurance may fit. Table of Contents 1. Updating sums insured after business growth or purchases 2. Building reconstruction and contents replacement costs 3. Why business assets become underinsured MyGen Insurance Brokers: Business Insurance 1. Updating sums insured after business growth or purchases A sum insured is the maximum an insurer will pay for a claim. If you buy machinery, increase stock, renovate or expand, compare the values listed in your policy with what the business owns now. New purchases or higher stock levels can create a gap if insured values stay the same. To avoid underinsurance for your business assets, update your asset schedule and notify your insurer when purchases or operations change.Review your cover at least once a year, before renewal, and after a major business change. Check policy limits, exclusions and excesses, and look for an underinsurance clause that could reduce a payout if your assets aren’t insured for their full value. Compare the cover basis and limits with each asset’s current replacement value and rebuilding cost. A broker can assess how equipment purchases, contracts, relocations and operational changes affect your risks and cover.Keep a clear record of your assets for any future claim. Store purchase invoices, asset registers, serial numbers and photographs together, and understand the evidence requirements and lodgement timeframes in your policy. These records can help substantiate ownership and value when you make a claim.Insurance gaps affect businesses and economies alike. The Insurance Council of Australia reported that 26% of Australian SMEs and 40% … [Read more...] about Avoiding underinsurance for business assets as costs change