8th October 2018

How and why you need to make sure your cricket club has the right sums insured

Cricket pavilion

It has always been the case that not having your cricket club’s buildings and equipment valued correctly could lead to significant financial loss in the event of a claim.

However, now there is even greater emphasis on clubs to get their sums insured right.  It is important to make a ‘Fair presentation of their risks’ to insurers when requesting quotations. This includes providing an accurate value of what you want to insure.

Although insurers are now unlikely to cancel policies where clubs have seriously underinsured, they are still likely to apply average and reduce any claims payment by the percentage of underinsurance.

This means that if you only insured for 50% of the replacement cost of your machinery, insurers would be within their rights to only pay for 50% of the cost of a stolen mower, for example, leaving you to fund the difference.

We know from experience that clubs find it difficult to come up with the cost to replace their stolen/damaged equipment, and the rebuilding costs for their buildings, but here are a few simple measures that you can take to ensure that your property exposures are adequately covered:

  • Take advice from local surveyors as to current rebuilding costs of your type of building(s). In the past we have found that rebuilding costs for standard construction buildings have been around £ 1,000 per square metre, but there is no substitute for a professional valuation.
  • Always increase your property sums insured each year by the rate of inflation. Inflation in the building industry has been running ahead of the general economy, so a 3-6% increase in property values would go some way to keeping your rebuilding values in line with current costs.
  • Create an asset register for your machinery and equipment. Use eBay or a similar sales site annually to check the cost of reinstating your equipment.
  • Review your insurance schedule annually to ensure any new equipment is included.

In our experience, underinsurance  is endemic in sports clubs, and the onus is upon you to make sure that you have adequate sums insured.

If you follow the simple steps set out above, it should help you reduce the potential costs from inadequate sums insured.

Call Colin Mico on 0330 008 5037 or visit www.astonlark.com/cricketclubs for more information.