A CUMBRIAN insurance broker is urging businesses to ensure they are fully covered to avoid the risks posed by under-insurance.

A spokesman for RAW Insurance, which has recently expanded to South Cumbria, said companies risk incurring huge costs if their assets are not valued correctly and they need to make a claim.

Under-insurance is when a business’s assets are valued and insured for less than the current rebuilding or reinstatement costs, and can lead to a reduced insurance pay out in the event of a property claim.

Ryan Roberts, who is a director at RAW Insurance, said: “Under-insurance isn’t a new phenomenon but we are seeing insurers focus on it more than ever in the event of a property claim.

“It’s essential that businesses take a serious look at the sums insured on their policies, to ensure that their assets are correctly valued and insured to the true value at risk."