As the pound weakens, currently standing at €1.11 and $1.24 (at the time of writing), and fears increase following hardline announcements regarding our access to the single market from politicians both home and abroad, it is important for businesses to understand the impact the weak pound can have on their insurance arrangements.

Many businesses here in the UK import their machinery from the EU and beyond; as such they are buying equipment and stock in euros, dollars and yen.

The weakening pound can impact upon the level of cover in place on your policy which will typically be arranged in pounds sterling.

Consider, for example, machinery bought for €1,000,000, which would previously have insured at circa £800,000, will now need to be insured at a figure of £900,000 to provide the same benefit under the policy and ensure the payment is adequate to replace the same machine.

There are also businesses operating abroad who are required contractually to insure their liabilities to a limit set out in a different currency which may again now require an uplifted limit in sterling.

It is important that businesses (and individuals) to keep a close eye on their sums insured to make sure their cover is adequate to cater for these fluctuations.

Zach Gray is commercial director at D E Ford Insurance Brokers. Providing bespoke insurance packages for businesses and charitable organisations.

Covid-19 Notification

We are following guidance and trying to ensure that our staff can work from home where possible. If you wish to make contact, please continue to use the direct telephone or email details for your usual contact(s).

If you are making a general enquiry or do not know your service contact(s) please call 01904 784141or send an email to

xCenta Risk Management Portal

Our team of Risk Managers have been busy developing and building a new Microsite portal. Our aim is to update the service to ensure our risk management clients continue to have access to lots of useful risk assessment guidance, case studies, forms and templates.

To access the Resource Portal, please Click Here to log on to our xCenta system.

If you have any questions or are unsure of your Username or Password, please speak directly to our xCenta Support Team on 01777 861829.

Thank you.

Site Navigation