Commercial and auto policies
SMEs are particularly at risk of being underinsured, as reports show they tend to go for policies based on ‘hunches’, and therefore miscalculate how long it would really take for their business’ revenue to return to a pre-loss level.
Following the well-publicised cyber crime scandals of 2017, you might assume that there wouldn’t be a single company in the UK left without cover, yet six out of ten (62%) have recently reported that their premiums are based on averages and other unknown factors, rather than an accurate analysis of their own needs.
So, should the worst happen – and they fall victim to a cyber-attack – a significant proportion would find themselves unable to recover from the financial fallout and reputational damages.
Another policy that’s often overlooked is auto insurance.
Despite the fact that half of UK drivers are aware that these actions will invalidate their policy, 31% will let other people drive their vehicle, 17% will travel with unrestrained pets, and 13% will not inform their provider of a change in employment.