The term underinsurance refers to inadequate levels of cover in an insurance policy. Underinsurance is often only evident when a claim is made. It is determined that around 50% of UK SME’s are underinsured , potentially leaving them vulnerable should the need to make a claim arise.
If you needed to make a claim but were deemed to be underinsured, you could face a significant financial loss, which would be crippling for many businesses. In this situation, there could be a substantial gap between the actual cost of your claim, and the maximum amount payable by the insurer. How would you cover the difference if this were to happen?
To avoid a potentially costly claim, it is important that you fully understand the risks that face your business; for example how much money it would cost to replace equipment if it were stolen or damaged. You should also consider the costs of potential legal action should a claim be made against your business.
It is also important that any changes to your business are discussed with your insurer, for example if you start to offer additional services, or employ more people. This could mean you are facing further, or different risks.
NAPIT Insurance Services are on hand to provide insurance advice helping to ensure you have the right cover that you need, and giving the peace of mind that you’re protected. We understand the risks that face your business meaning our insurance products are designed to go beyond the standard levels of protection.
For more information or to speak to the team for a quote, call NAPIT Insurance Services on 03455 646 173, or complete an online enquiry form.