Underinsurance – claims examples

Our latest Risk Insights Report* highlights that the current macro-economic climate may force businesses into cost-cutting mode, exacerbating the already real threat of underinsurance.

We estimate that 42% of SMEs who insure a building with Aviva are underinsured1, with 19% of businesses admitting to not having reviewed their indemnity period in the last two years2. Yet 66% believe they have the right level of cover in place for their business3.

To help you understand how underinsurance can put businesses at risk, we’ve created a new claims scenario document.

What’s covered?

The document covers:

  • Underinsurance claims examples for a Restaurant, Property Owner and a Garden Centre. Each example details what led to the claim, the level of underinsurance and the financial vulnerability this created within the claims settlement. 
  • Key takeaways including the importance of reinstatement valuations and adjusting insurance cover to take into account seasonal fluctuations.
  • Advice and guidance on how each scenario could have been avoided.

Download the claims scenario document here.

With 10% of SMEs stating they wouldn’t survive if they had to pay more than £10,000 towards a claim, it’s important that businesses understand the harsh reality that underinsurance could have.


* Aviva Risk Insights Report 2023

1 Based on Aviva's modelled data on SME customers with buildings insurance, September 2022.

2 Figures relate to a survey of 502 micro, small and medium sized business, carried out by YouGov on behalf of Aviva in September 2022.

3 From Aviva Risk Insights Report 2023. See page 14.