Underinsurance is a major issue in the SME market, with estimates suggesting that anything from 40% to 70% of buildings aren't insured for the full reinstatement value. But where the sum insured is inadequate, it can have serious repercussions for the business owner.
Where underinsurance comes to light on a loss, insurers can apply a proportionate remedy, asking for additional premium, imposing different policy terms or reducing the claim payment.
"It's a serious issue when a business owner has
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