In business you estimate and calculate every single day. You know roughly how many litres of degreaser to buy each month, how many of a certain brake pad you need in stock, and how much to charge for servicing the Hilux that just came in.
Many of these calculations will be based on experience — an informed “best guess”. You know how much of something you use, how long certain jobs take and how much your overheads are. Often your estimate is right. Sometimes it’s a bit off.
But here’s an exercise for you. How much do you reckon it would cost to replace your building if it burned to the ground?
Whatever dollar value you just came up with, chances are it was a best guess — a rough figure, based on what you know about property values, the amount you’ve invested in it, and perhaps even how much you’ve insured it for.
But (and here’s the worrying news) analysis by Capricorn of more than 250 commercial properties found that 70 per cent of Members do not have adequate building protection to cover them if disaster strikes. That means they are potentially financially exposed if they needed to make a claim.
Is your business one of them?
Understanding the difficulty of calculating an exact replacement value for buildings, Capricorn Risk Services invested in a state-of-the-art tool in March 2018 that does just that. Developed by global data analytics company CoreLogic, the Cordell estimator tool allows Capricorn Risk Services to generate a completely independent assessment of a building’s replacement value using a series of algorithms and historical construction data. Since the estimator was introduced, Capricorn Members who protect their building with Capricorn Risk Services have received their renewal quote along with a report generated using the estimator, ensuring they can be adequately protected.
Even if your property is not currently protected by Capricorn Risk Services, you can request an independent review from Capricorn Risk, using our estimator, to ensure you have enough protection.
Capricorn Risk Services chief executive officer Jim Glossat said it was all about giving Members peace of mind.
“We know it can be difficult for Members to calculate the replacement value of a building,” he said. “People sometimes forget that while they have an aging building now, they’ll have to replace it with a brand-new one.
“With this estimator tool, Members are in a better position to assess whether they are adequately protected or exposed if something goes wrong.”
Being underprotected carries serious financial risks. Following a major incident you could be left with out-of-pocket expenses if the costs are higher than your Business Building Limit of Protection.
For more information on products available through Capricorn Risk Services, call us on 1800 007 022 and make an appointment to speak with your Risk Account Manager or visit Capricorn Risk.
AU: Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197).
NZ: Products sold through Capricorn Risk Services Pty Ltd (NZBN 9429041139813) include discretionary risk protection and general insurance products. Discretionary risk protection is issued out of Australia by Capricorn Mutual Ltd. Before deciding to acquire discretionary risk protection you should consider the Product Disclosure Statement to see if it is appropriate for you. This can be obtained from Capricorn Risk Services Pty Ltd by phoning 0800 555 303 via email info@capricornrisk.com or by visiting website capricornrisk.com. General insurance products are issued by a range of insurers and are available through Capricorn Risk Services Pty Ltd as a member broker of PSC Connect NZ Limited. Capricorn Risk Services Pty Ltd is a registered financial services provider (390446) and a corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038).
