Under-insurance
Under-insurance means the sum insured is lower than the real value of what is insured. After a loss you risk being paid only a proportional share of it – not the full amount. Review your sums insured regularly, especially as the business grows or buys new equipment.
Examples
Furnishings worth DKK 400,000 are insured for only DKK 200,000. After a DKK 100,000 loss you may receive only half – DKK 50,000.