The business grew. The sum stayed the same: PLN 2.5 million instead of PLN 5 million

The situation

For years, the client kept the property sum insured at PLN 2.5 million. During that time, a production hall and several smaller buildings were built; the appropriate sum should have been PLN 5 million. According to the client, those servicing the existing policy had not drawn attention to the need to update the sums insured.
For a loss of PLN 100,000, the average clause was applied: the payment was PLN 50,000. The client came to BTLA with this problem.

What we did

We carried out an audit and reviewed the sums insured to reflect the expanded assets. The starting point became the company's current situation rather than repeating the figures from previous policies.

Outcome

Two years later, a hailstorm damaged roofs and glazing. In this case, the full value of the loss was paid; correctly set sums insured avoided the earlier underinsurance problem.
These were two separate events. The PLN 100,000 amount relates to the first loss; we do not state the value of the second. An appropriate sum insured is important, but payment also depends on the cover and other terms of the particular policy.

Description: The BTLA Broker team. An anonymised account, with no client details disclosed. The outcome of an individual case is not a promise of the price or scope of cover in another case.