Soaring construction costs may leave businesses underinsured

Chance Gilliland, head of global property delegated authorities at U.K.-based Chaucer Insurance Group PLC, said that rising construction costs driven by supply chain disruptions and scarcity of raw materials may leave U.K. businesses underinsured and at risk of excess costs, Strategic Risk Europe reported. Mr. Gilliland added that many businesses have not increased the amount covered by their property insurance despite the increase in construction costs. This could leave them with insufficient funds to replace or rebuild the damage property in case of a fire or other catastrophe.