Underinsurance – claims examples

Our latest Risk Insights Report highlights that the current macro-economic climate may force businesses into cost-cutting mode, exacerbating the already real threat of underinsurance. We estimate that 42% of SMEs who insure a building with Aviva are underinsured1, with 19% of businesses admitting to not having reviewed their indemnity period in the last two years2. Yet 66% believe they have the right level of cover in place for their business3.

To help your clients understand that underinsurance can put their business at risk, we’ve created a new claims scenario document.

What’s covered?

The document, which can be shared directly with your clients, covers:

  • Underinsurance claims examples for a Restaurant, Property Owner and a Garden Centre. Each example details what led to the claim, the level of underinsurance and the financial vulnerability this created within the claims settlement. 
  • Key takeaways including the importance of reinstatement valuations and adjusting insurance cover to take into account seasonal fluctuations.
  • Advice and guidance on how each scenario could have been avoided.

With 10% of SMEs stating they wouldn’t survive if they had to pay more than £10,000 towards a claim2, it’s important that businesses understand the harsh reality of underinsurance.

Download the claims scenario document

Download here

Your underinsurance hub

For more helpful underinsurance resources and to hear and watch the thoughts of experts throughout our business, visit the dedicated hub on Aviva Broker today.


1 Based on Aviva's modelled data on SME customers with buildings insurance, September 2022.

2 Figures relate to a survey of 502 micro, small and medium sized business, carried out by YouGov on behalf of Aviva in September 2022.

3 From Aviva Risk Insights Report 2023. See page 14.