Why businesses need to be aware of Under-Insurance

Under-insurance is not a new issue. Often recognised as an inadequate level of insurance cover held by the policy holder, the effect of under-insurance can often result in the policy holder finding themselves subject to financial loss further to a claim or legal fee payments whereby the amount of insurance cover originally obtained wasn’t enough to protect the company.

This means that increasingly, businesses owners and managers are coming up against unforeseen situations whereby they are finding that they are not adequately covered in terms of insurance, against varying risks which their companies are facing.

Businesses can sometime be lured by lower policy costs but beware, this does not always mean that the policy is going to offer the best cover for the company.

Encouraging businesses to look at the complete map of their company in terms of production, processes, equipment, employment, security and technology, means that owners can understand where risk is apparent, so that they don’t find themselves a victim of under-insurance.

 

Don’t be an under-insurance victim. Does your company have sufficient cover?

Here at JRW Risk Solutions Ltd we aim to understand a business as a whole entity rather than just looking at a single factor. We build relationships with clients to understand their needs and assess risks which their companies come up against. This means that they obtain the right cover and so that they don’t find themselves in the under-insurance category.

So whether you operate in the Retail, Manufacturing or the Wholesale sector or you are maybe a Start-up business, your local West Midlands insurance broker can provide advice and design a commercial insurance policy which protects your assets and liabilities across the many types of risk faced by your company.

To find out more about commercial business insurance protection please contact our team for a confidential review of your company or see our insurance website pages for more details.

 

Further reading about under-insurance:

https://www.investopedia.com/terms/u/underinsurance.asp#:~:text=Underinsurance%20refers%20to%20inadequate%20insurance,out%20by%20the%20insurance%20policy

 

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