Could your clients be underinsured?

Of the 2000 commercial properties surveyed by BCH in 2015, 87% were underinsured. Underinsurance can be a huge risk to businesses and is increasingly complex when calculating business interruption and indemnity periods. But we’re here to help…

It’s often the insured that sets their buildings sum insured, a task that can often be filled with complexities, even for what may appear to be relatively simple structures. Furthermore customers often look to their broker or web based information to support this decision, often without the necessary information or expertise to select the correct levels.


On average there’s a 55% increase in sums insured when reviewed and assessed by professionals.

Professional valuation is key as the market value alone isn’t enough; full reinstatement costs need to be considered.


Our handy Underinsurance guide has been designed to help explain what underinsurance could mean for your customers.


It’s important that your customers have the right level of business interruption cover in place. It’s not just about repairing damage or reinstating processes, if a business can’t provide its regular service and products to customers, they may go elsewhere and it will take time and money to win them back from competitors. In addition to taking out business interruption insurance, businesses can protect themselves by adopting practices that would help them recover from an incident that would cause significant interruption. 


Our business interruption guide talks through what things our customers can put in place to get them back on their feet quicker. From having a wide customer base with no reliance on one large customer to hot sites or alternative locations, this guide gives practical relevant advice.

At Aviva, our risk management capability offers, for the right customer, a wide range of services, some fee based, that can assist a customer when reviewing their cover;

  • business interruption insurance review – assessing all areas of the business to ensure cover is correct including extensions to cover where required
  • indemnity period assessment – discussion re the length of the maximum indemnity period, to ensure a customer has allowed for all relevant issues
  • supply chain assessment – fully assess supply chain for weaknesses and advice on risk management
  • loss scenario testing –in conjunction with a nominated loss adjuster and an Aviva claims manager a full assessment of how a policy would react to an incident and use / adequacy of their business continuity plan
  • business continuity plan assessment – a desktop review to ensure a plan is in line with established best practice and the key features of a customers business
  • managing business continuity – a one day in-house course that trains key staff in the creation and maintenance of a business continuity plan.


For more information you can visit our risk management website where you can access tools and templates to support your customers when it comes to health and safety. Alternatively, if you have any questions, please contact your usual underwriter or Aviva sales manager.

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