Commercial mortgage users 'should have adequate insurance'

22 November 2010

Written by Jeni Browne

Business mortgage users may want to follow one organisation's advice and ensure they have adequate indemnity cover.

The British Insurance Brokers Association (BIBA) warned property owners that failing to seek professional advice could leave them out of pocket.

"Consumers and businesses could be putting themselves at financial risk by cutting out or reducing key areas of insurance protection," it was stated.

Its warnings came after research showed increasing numbers of business and homeowners were forgoing traditional high-level insurance policies as a result of the economic downturn.

The most common behaviours noted by brokers were "reducing levels of sums insured, increasing excesses and deleting cover that is deemed non-essential".

As a result of the findings, BIBA noted that it intends to raise awareness of the benefits of seeking advice from professionals and the importance of having cover.

Last month, the association criticised the government's plans to reduce the amount of money spent on flooding, describing them as a step backwards.

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