In today’s fast-changing risk landscape, fires are becoming more frequent and more complex. Recent industry data shows 40% of reported fires in 2024 were caused by lithium-ion batteries and a 65% increase in solar panel-related fires since 2021.* These trends highlight a critical question: Is your insurance keeping pace with your risks?
The hidden threat of underinsurance
Underinsurance is one of the most common and costly mistakes businesses make. If your property is insured for less than its true rebuild cost, you could face devastating financial consequences. For example:
- A retailer insured at just 54% of its rebuild cost faced a £70,000 shortfall after a fire.*
- Another business underestimated professional fees, leaving a £567,000 funding gap during recovery.*
These gaps don’t just delay rebuilding – they can threaten your entire operation.
Why does this happen?
- Rising construction costs and inflation.
- New fire risks from modern technologies like batteries and solar panels.
- Lack of regular valuations and index-linked updates.
How Vista can help
At Vista Insurance, we don’t just sell policies – we help you protect your business resilience.
Whether it’s safeguarding your bricks and mortar, people, reputation or data, we advise across a wide range of commercial insurance products. With risk management built into our service, we’ll help you assess your exposure, reduce your vulnerabilities, and make more informed decisions.
Don’t let the Average Clause catch you out
If you’re underinsured, insurers apply the “average clause,” reducing payouts proportionally. Imagine suffering £1M in damage but only receiving £500K because your cover was set too low. Could your business survive that?
Want to check your business is protected? Book in a call with our team below. We’ll help you:
- Identify underinsurance risks.
- Build a plan for business continuity.
- Ensure your cover reflects today’s costs.
Ready to get in touch? Fill in your details on our contact form and a member of our team will be in touch.
*Zurich
