Insurance Adequacy Review

An insurance adequacy review examines whether a business's existing insurance coverage, spanning property, marine, liability, business interruption, employee benefits, and other classes, genuinely matches its actual risk exposure and asset values. In a market where asset bases, operations, and supply chains change faster than insurance programmes are typically revisited, many businesses unknowingly carry either under-insurance that leaves them exposed to loss, or over-insurance that wastes premium spend. This review is relevant to any organisation that holds physical assets, employs people, faces third-party liability, or depends on business continuity to protect revenue.

Why This Matters

Under-insurance can trigger the "average clause" in property policies, resulting in claims being settled at a reduced proportion even when the loss is genuine, while over-insurance quietly inflates costs year after year without adding protection. Beyond the immediate financial impact, inadequate coverage can affect a company's ability to recover from a major loss, meet lender or contractual insurance covenants, and satisfy statutory obligations relating to employee compensation and public liability. Getting the sum insured and policy terms right is therefore as much a financial resilience question as an insurance one.

How We Help

Exposure and Sum Insured Assessment

We review fixed asset registers, stock records, and business income statements alongside current policy schedules to assess whether declared values and sums insured reflect current replacement cost, reinstatement value, or indemnity period assumptions, rather than outdated figures carried forward from prior renewals.

Coverage Gap and Overlap Analysis

Our teams map the full insurance programme against identified operational and contractual risks to surface gaps such as uninsured business interruption extensions, inadequate liability limits, or missing cyber and directors' and officers' coverage, as well as overlaps where multiple policies duplicate the same protection at extra cost.

Policy Wording and Warranty Review

We examine policy wordings, exclusions, warranties, and conditions in detail, since a policy can appear adequate on sum insured alone while still containing restrictive clauses that would reduce or defeat a claim at the time of loss.

Who Needs This

• Manufacturing and processing units with significant plant and stock values
• Businesses renewing insurance programmes without a recent risk reassessment
• Companies expanding operations, locations, or asset bases
• Organisations bound by lender or contractual insurance covenants

Our Approach

We approach adequacy review as a practical exercise rather than a theoretical audit, working closely with management, insurers, and brokers to arrive at recommendations that are implementable at the next renewal. Our assessments are grounded in the business's actual operations, asset registers, and financial statements, and we present findings in a manner that helps decision-makers prioritise the changes that matter most for genuine risk protection.

Get in Touch

To discuss how we can support you with insurance adequacy review, write to us at info@agarwalurs.com.