How to avoid under-insurance!

Here at JSW Insurance, our main aim is to ensure that our clients are always satisfied with our service and we do all that we can to make sure they are protected at all times. That is why we are here to give you some tips on how to make sure you know how to avoid under-insurance.

In the five minutes it takes to read this article, you could save your business thousands:

  • Insurance calculations for buildings or properties should be based on the price of rebuilding and not the market value price.
  • When you are looking at business interruption insurance, make sure you remember that accountancy and insurance policy definitions of annual gross profit are different.
  • If you are considering an indemnity period for business interruption policies, remind yourself that 24 months is more than likely to be the minimum period needed for a business to fully recover its trading level and customer base.
  • Some insurers will try and draw your attention to the “important” conditions of your policy, however, there is always room for error, so make sure you check your documentation thoroughly.
  • It may be a good idea for you to have a disaster recovery or business continuity plan in place to help you recover from a loss which may occur.
  • If you have taken out a liability policy, it is good to consider that they are quite complex. Therefore, make sure that you have considered the risk of claims against you and whether you have taken on any liabilities under your terms of business contracts.


Make sure you are always aware of what you should be looking out for when taking out an insurance policy, whether it’s commercial or personal, we can help you!