Underinsurance occurs when you have not taken out the right amount of insurance cover for your needs. There will be a variety of factors to take into account when you assess how much insurance you need and if you are not sure you should get advice from a broker or valuation expert because if that amount is wrong it is likely to impact the amount you are paid for any claim you need to make
Our SME Pulse survey 2015, found 1 in 5 SMEs were not confident that they have the right insurance cover* and that’s a situation that could leave them out of pocket. For example, looking at a sample of clients where underinsurance was identified Aviva’s survey team found 177 cases where customers had been underinsured on average, by £486,000.**
For more information read our guide to Underinsurance in the Commercial market
*Research was conducted online by RedShift among 1,507 SMEs in February 2015.
**Sample of 177 commercial property clients where underinsurance was identified by Aviva’s survey team in 2014.