Arthur J. Gallagher* has partnered with independent specialist Cardinus Risk Management to offer its commercial property and property investor clients a cost-effective nationwide service that will help eradicate the risk of underinsurance and its far-reaching consequences.
With figures revealing that almost 80 percent of commercial properties in the UK could be underinsured by as much as 60 percent, Gallagher said it has teamed up with Cardinus to provide UK property owner clients with “access to consistent, quality building insurance valuation surveys that will ensure their assets are adequately protected.”
“As the costs of rebuilding continue to rise, we need to ensure our property owner clients have all the tools and support they need to counter the risk of underinsurance, prevent any reduction in claims payment through ‘averaging’ and secure settlement as quickly as possible,” said Greg Spiteri, National Practice leader for Real Estate at London-based Arthur J. Gallagher.
If a property is underinsured and funds are not available to repair and rebuild, owners could be forced to increase their borrowing and delay their rebuild, which ultimately could hit their balance sheets, he added.
“Tenants could even see themselves dispossessed and the owner exposed to legal action from lenders and leaseholders as a result of the inadequate levels of insurance cover, bringing brand and reputational damage into the equation too,” he noted.
“With its UK-wide network of professionally trained surveyors and consultants, and more than 20 years’ experience specializing in building valuation surveys, Cardinus was the natural choice of partner to support our own national network of more than 50 client-facing branches with an independent quality service,” Spiteri continued.
“We’re delighted to partner with Arthur J. Gallagher and help ensure its thousands of property owner clients neutralize the risk of underinsurance,” commented James Truscott, chairman of Cardinus Risk Management, which is headquartered in London.
“Undertaking regular professional insurance valuations can also deliver other important benefits, such as improved borrowing facilities based upon increased asset values, and we look forward to working together to the ultimate advantage of property owners.”
* Arthur J. Gallagher is the brand name for the international broking and underwriting division of Itasca, Ill.-based Arthur J. Gallagher & Co. – a division that covers territories outside of the United States with more than 6500 employees.
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