Rising risk of underinsurance in commercial insurance

The rising risk of underinsurance

The issue of underinsurance is a complex one, and many companies struggle to understand how much cover they need. The growing price disparity between insurance coverage and the cost of potential claims is making those calculations even harder. As a result, the gap between companies’ existing cover and what they need in the event of a claim is widening dramatically. This leaves underinsured companies vulnerable to the gathering economic storm and poses a significant threat to UK plc.

The insurance industry needs to take urgent measures to tackle the problem of underinsurance. Commercial lines insurance brokers will play a critical role in helping underinsured companies get the right cover and protecting them against the deepening economic storm.