Risk Insights – What does it mean to be underinsured?
The dangers of being underinsured
Many businesses, regardless of industry, are risking their own survival by unwittingly remaining underinsured. The problem is widespread and perennial and a cataclysmic event can strike at any moment, leaving businesses vulnerable to complete destruction.
Many small and medium sized businesses in the UK are underinsured due to a lack of business interruption insurance or because they did not know whether this type of cover was include in their business insurance policy. You may only find out that your business is underinsured when you experience a major loss event, such as flood or fire, and need to make a claim.
Be proactive and know your status now so you can fix that gap and be prepared for anything.
What does it mean to be underinsured?
If you business is underinsured, it means that you possess policies but your assets are valued and insured at less than their true value, leaving your business inadequately protected. Therefore, in the event of a disaster, you would be compensated for less than the true value. A shortfall in your insurance payout could ruin your organisation.
Find out more
You can find out more about underinsurance by downloading our Risk Insight – Risk Insights The Dangers of Being Underinsured