To help understand the importance of having the right amount of insurance and what the implications are if you don't, Aviva have produced a quick guide to Underinsurance in the commercial market.
The guide explains what the "average clause" is and the impact it has on the way claims are calculated. It also offers examples of cases where businesses had insufficient insurance, and highlights some of the times in the life of a business when the insurance needs might have changed.
Looking at a sample of 383 clients where under insurance was a problem in 2014,the Aviva survey team referred 206 commercial property clients for a professional valuation. In the remaining 177 cases their own risk management surveyors found that each client was effectively underinsured by on average,£486,000.