In Focus: Risk managing underinsurance


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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected].

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have an Insurance Age account, please register now.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: