The 4 Most Commonly Under-Insured Commercial Policies

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Under-Insured company’s assets are being valued and insured at less than their true worth, leaving you inadequately protected. Therefore, in the event of a disaster, you would be compensated for less than the true value of your loss.

Any commercial policy can be underinsured but insurance experts identify the following as the most common areas of concern:


An estimated 80% of UK commercial properties are underinsured according to a recent survey. Failing to regularly reassess the value of your property and adjust your policy accordingly could lead to your business being underinsured. This could be unprepared for even the smallest losses.

Contents and Equipment:


Insurance experts confirm that many organisations fail to provide a complete list of property assets on their business contents policy. This leads to inaccurate sums insured. Maintaining a frequently updated inventory of all contents and equipment on-site such as:

  • Machinery
  • Technology
  • Office supplies

This is the best way to ensure it will be covered when making a claim.

Business Interruption:

A recent study revealed that over 40% of the UK’s organisation policies are underinsured due to insufficient indemnity periods. Organisations need to make sure that the realistic indemnity period if enough for the business to recover any losses. This period falls between 18 and 24 months.


anonymous shattering cyber security

Government data found that although over 30% of the UK organisation experiences a cyber-attack. 11% possess proper cyber insurance. Purchasing robust cyber-cover is crucial for a business as this is a precaution to offset the potential huge losses that can occur. Always protect your business if you are under a cyber-attack.

The Laws of Average when dealing with insurance claims:

When you insure your assets, such as a building, you advise your insurer of the ‘insurance value’ which then forms the sum insured under your policy. The insurer charges you an insurance premium based on this amount.

If you get this insurance value wrong and it is lower than the real value at risk, then your premium will be based on the wrong value and will be lower than you should have paid to cover the property at risk.

It would not be fair on the insurer and their other customers if you received a full insurance payment if you have only paid a part of the whole premium that should be due. To protect Insurers in this scenario, the policy contains a Condition of Average.

Simply the Condition of Average says that if you declare an insured value that is X% of the true value, then you have only paid X% of the premium due and will only receive X% of your claim.

How we can help!

At Trevellyan Insurance Brokers, we want to help businesses not be at fault, insuring with us today can help you keep you secure and safe in hands. We make sure that you are covered and also keep you insured.

As brokers, we can help you find a policy that is at the best price.

We can offer you a quote that is suitable for you and right for your business.

Contact us today on 0207 537 6603 or leave us an email at

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