Aviva has unveiled a guide to help businesses understand the cost implications of not having the right amount of insurance and explain some of the times in the life of a business when the insurance needs might have changed and need reviewing.
The insurer’s SME Pulse earlier this year found one in five SMEs were not confident that they have the right insurance cover and that’s a situation that could leave them out of pocket. For example, looking at a sample of clients where underinsurance was identified Aviva’s survey team found 177 cases where customers had been underinsured on average, by £486,000.
Angus Eaton, managing director of commercial insurance at Aviva, said: “Insurance provides valuable protection. However, it is important to make sure you regularly assess what you need because finding out after an event that you don’t have the right insurance is too late.
“Being underinsured could leave you potentially having to pay the difference between the actual cost of the loss and what was covered by insurance, from your own pocket. Depending on the amount you were underinsured by that could run into hundreds or even thousands of pounds – sums that might mean the difference between surviving or having to close down.
“We have created our guide on underinsurance to share some simple tips and advice, and highlight some of the key times in the life of a business when your insurance needs might have changed. If, when you have read it, you have any concerns about your insurance requirements I would recommend you get professional advice to make sure you are fully protected.”