Sum Insured Calculators

Calculating the right level of cover for your insurance

For your insurance to be effective, it needs to be both adequate and up to date.

Use the calculator on this page to calculate the risk in under insuring, but first read why it’s important to get the level of your insurance right.

Why you must avoid under insurance

Many people incorrectly believe that if they under insure, the only penalty will be if the claim exceeds the sum insured. This is not correct.
Insurance premiums are based on the assumption that the assets – or in the case of business interruption, the insurable gross profit – are insured for their full value at the inception date of the policy.

If the assets or insurable gross profit are not insured for their full value, a business insurance policy will typically treat the policy holder as being a co-insurer for all claims over 5% or 10% of the declared value.

Many insurance policies allow a percentage of tolerance in getting it right. This is typically 15% (85% co-insurance) or 20% (80% co-insurance).


The following calculation is designed to highlight the penalty that will be imposed should the sum insured or declared value be under the true value at risk at the start date of the policy.

ARM insurance

We can help you with the right cover.