Companies should regularly review their business insurance to make sure it is at the right level.

This is according to insurance expert Nick Kennedy, who observed firms need to make sure their policy is still relevant to the line of business individuals are currently in.

Writing in the Peterborough Telegraph, he observed there will always be changes in an organisation's requirements as it evolves.

"It is essential that you are accurately represented to your insurers as a failure to disclose a material fact could invalidate your policy in the event of a claim," Mr Kennedy remarked.

The expert went on to note firms should also make sure the sums they are insured for and the limits of indemnity they have are sufficient.

He added recent research discovered 50 per cent of UK commercial property may be under-insured, a situation that could see a lot of businesses ending up out of pocket.