Underinsurance – claims examples

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.}