How do you check a business insurance policy?

Gather the schedule, the full wording and every endorsement, then work section by section: confirm the header facts, record each coverage area's limit and excess, read the exclusions and any conditions or warranties, and note where cover is absent or capped. Reviewing the schedule alone is the most common mistake — the exclusions and conditions live in the wording.

What should you look for in a commercial insurance policy?

The insured legal entity and additional insureds, the policy period, sums insured and per-section limits (including hidden sub-limits), the excess for each section, the sections actually present, the key exclusions, and any conditions precedent or warranties. Endorsements matter too — a mid-term endorsement can quietly cut a limit or add an exclusion.

What are common coverage gaps in a business policy?

Underinsurance (a sum insured below reinstatement value), a low sub-limit hiding under a generous headline limit, a missing section the business assumed it had (business interruption or cyber are common), a broad exclusion removing a core exposure, and a warranty the business can't realistically meet. Each can leave a claim unpaid.

What is the difference between a limit and a deductible?

The limit (sum insured) is the most the insurer will pay for a covered loss under a section; the deductible or excess is the amount the insured pays first on each claim. A section can have a per-claim limit and an aggregate limit, and a peril-specific excess that differs from the standard one — both are worth checking.

Does reviewing a policy count as insurance advice?

Describing what a policy says — its coverage, limits, exclusions and gaps — is information, not advice. Under the EU Insurance Distribution Directive (IDD 2016/97), advice means a personalised recommendation on the basis of the customer's demands and needs. Telling someone what a document covers is descriptive; telling them what to buy is a regulated recommendation.

How often should a business review its insurance?

At least once a year at renewal, and whenever the business changes materially — new premises, higher stock values, new activities, an acquisition, or a large contract with its own insurance requirements. A material change can leave the sums insured or the covered sections out of step with the actual exposure.

What is a warranty in an insurance policy?

A warranty is a condition the insured promises to satisfy — for example that an intruder alarm is set, or that minimum security is maintained. Breaching a warranty can suspend or void cover for that section, sometimes even where the breach was unrelated to the loss, so warranties are among the most important clauses to identify in a review.

Insurance policy review – coverage & gaps checklist

What is an insurance policy review?

A structured read of the policy documents to confirm what is covered, at what limits and excesses, and where the gaps are.

An insurance policy is not one document but three: the schedule (or declarations / försäkringsbrev) that names the insured, the sums insured and the limits; the policy wording that defines what each section covers and, crucially, what it excludes; and the endorsements that amend either. A review reads all three together.

The goal is descriptive, not decisive: to lay out clearly what the policy says — the insured, the period, each section's limit and excess, the key exclusions, the conditions and warranties — so a broker or a business can see at a glance whether the cover matches the exposure and where to look closer. It is the read that happens before a renewal, before a claim, and before an intermediary advises a client.

Authoritative source

What should you check in an insurance policy?

The insured, period, sums insured and limits, deductibles, covered sections, key exclusions, conditions and warranties, and endorsements.

Work top to bottom. Start with the header facts — the insured legal entity and the period — because a mismatch there undermines everything below. Then take each coverage section in turn and record its limit and excess, watching for sub-limits that cap a peril below the headline figure. Finally read the wording for exclusions, conditions precedent and warranties, and check every endorsement against the schedule. The eight elements below are the ones worth a fixed checklist so nothing is skimmed.

How do you review an insurance policy, step by step?

Gather all documents, confirm the header facts, map coverage section by section, read the exclusions and conditions, then list the gaps to verify.

1
Gather the full document set
Put the schedule (declarations / försäkringsbrev), the policy wording and every endorsement in one place. Reviewing the schedule alone misses the exclusions and conditions that live in the wording.
2
Confirm the header facts
Check the insured legal entity, period, policy number and premium against what the business actually is and holds. Any mismatch here undermines everything below it.
3
Map coverage section by section
For each section — property, liability, business interruption, legal, cyber — record its status (covered, limited, excluded or simply not addressed), its limit and its excess.
4
Read the exclusions and conditions
Pull the key exclusions and any conditions precedent or warranties from the wording. Quote or reference the clause so a human can verify it against the full policy.
5
List the gaps and verify
Write down where cover is thin, absent or capped, and what to verify against the full wording. Descriptive notes only — the coverage decision stays with the broker or the insured.

Which policy elements should you check?

Eight elements, each with what to look for and the red flag that signals a closer look is needed.

Element	What to look for	Red flag
The insured	The exact legal entity (and org/registration number) matches the business that carries the risk, plus any subsidiaries or additional insureds.	A trading name instead of the legal entity, a missing subsidiary, or an additional insured that was promised but isn't listed.
Policy period	The from–to dates, whether cover is claims-made or occurrence, and that there is no gap at renewal.	A lapsed or not-yet-incepted period, or a claims-made policy with no retroactive date.
Sums insured / limits	The limit for each section, whether it is per-claim or aggregate, and any inner sub-limits that cap a peril below the headline figure.	A headline limit that looks generous but hides a low sub-limit, or a sum insured well below the true reinstatement/replacement value (underinsurance).
Deductibles / excess	The excess for each section and any special or higher excess for specific perils (flood, theft, water damage).	An excess so high the cover is effectively hollow for common small claims, or an undisclosed peril-specific excess.
Covered perils / sections	Each insured section — property, liability, business interruption, legal expenses, cyber — is present and its scope is clear.	A section the business assumed it had (e.g. business interruption or cyber) that is simply absent from the schedule.
Key exclusions	What the wording carves out — flood, cyber, wear and tear, contractual liability, unoccupied premises — and whether any matters to this business.	A broad exclusion that removes cover for a core exposure without an endorsement buying it back.
Conditions & warranties	Conditions precedent and warranties (alarm set, minimum security, maintenance) the insured must satisfy for cover to respond.	A warranty the business can't realistically meet — breach can void cover for the whole section.
Endorsements	Every endorsement is present, consistent with the schedule, and its effect (adding, restricting or clarifying cover) is understood.	A mid-term endorsement that quietly cut a limit or added an exclusion, or a promised endorsement that never appears.

Reviewing the schedule alone is the single most common mistake — the exclusions, conditions and warranties that decide whether a claim is paid live in the full wording.

What does a policy-review checklist look like?

Ten questions to answer for any commercial policy — copy them and work down the list.

Below is a checklist you can copy and run against any commercial policy. Each line is a question to answer from the documents, not a judgement about what to buy.

Insurance policy review — checklist

Insured: the correct legal entity, org/registration number, and every additional insured are named.
Period: dates are current with no renewal gap; claims-made policies have a retroactive date.
Sums insured are adequate for replacement/reinstatement value — no obvious underinsurance.
Each section's limit is noted, with per-claim vs aggregate clarified and any sub-limits flagged.
The excess for each section is noted, including any higher peril-specific excess.
Every section the business needs is present: property, liability, business interruption, legal, cyber.
Key exclusions are listed, and each is checked against this business's real exposures.
Conditions precedent and warranties are identified and are ones the business can actually meet.
All endorsements are present, consistent with the schedule, and their effect is understood.
Gaps and points to verify are written down against the full wording, not just the schedule.

Free checklist to copy. It confirms what the policy says; the coverage decision stays with the broker or the insured.

A short worked example

A combined commercial policy for a machine shop — the review surfaces two gaps behind a clean-looking schedule.

Insured	Westgate Machining Ltd (12345678)
Policy	Combined commercial · COM-4471-2026 · 2026 calendar year
Property	GBP 1.2m · excess GBP 1,000 — covered
Liability	GBP 5m · excess GBP 500 — covered
Business interruption	GBP 750k · indemnity period 12 months — limited (short for long lead-time machinery)
Cyber	Not addressed — a gap for a business taking card payments
Key exclusion	Flood excluded at the named premises
Verdict	YELLOW → readable and mostly clear, two gaps to verify

What are common coverage gaps and mistakes?

Underinsurance, hidden sub-limits, missing sections, broad exclusions and unmeetable warranties are the usual traps.

Underinsurance — a sum insured below the true reinstatement or replacement value, which can trigger an average clause and cut every claim.
A low sub-limit hiding under a generous headline limit for a specific peril.
A section the business assumed it had — business interruption or cyber are the common absences.
A broad exclusion (flood, cyber, contractual liability) removing a core exposure without a buy-back endorsement.
A warranty or condition precedent the business can't realistically meet, which can void cover on breach.
Reviewing the schedule only and never opening the wording where the exclusions and conditions live.
A mid-term endorsement that quietly cut a limit or added an exclusion since inception.

Is reviewing a policy the same as insurance advice?

No. Describing what a policy covers is information; a personalised recommendation on demands and needs is regulated advice under the IDD.

The EU Insurance Distribution Directive (IDD 2016/97) draws a clear line. Providing relevant information about a product — what it covers, its limits, its exclusions — is required of any distributor and is not, on its own, advice. Advice means giving a personalised recommendation that explains why a particular product best meets a customer's demands and needs, on the basis of information obtained from that customer.

So a review that says "this policy excludes flood and has no cyber section" is descriptive information. Saying "you should add flood cover and buy a cyber policy" is a recommendation — and a regulated intermediary must run the proper demands-and-needs process and document a personalised recommendation before crossing that line. A tool, or a checklist, can safely describe and compare coverage; it must not present itself as making the buying decision for anyone.

What does the Tedrix output look like?

Tedrix reads the policy and returns a structured readout: header, coverages with limits and excess, exclusions, gaps to review and a GREEN/YELLOW/RED verdict.

Here is a readout after Tedrix read a combined commercial policy. It extracts the header verbatim, maps each coverage area with its limit and excess, lists the key exclusions, flags the gaps to review, and sets a GREEN/YELLOW/RED status. It describes what the document says — it never recommends a product.

Verdict:YELLOW

Business interruption is present but the indemnity period is short relative to typical cover — verify against the wording.
Cyber is not addressed anywhere in the document — a gap for a business that takes card payments.

A descriptive readout of the document, not insurance advice. Limits and excesses are read verbatim; the tool never invents a figure. Verify against the full wording.

Summary

A combined commercial policy covering property and public/product liability with clear limits. Business interruption is included but capped at a 12-month indemnity period, and there is no cyber section — both worth reviewing against the business's exposure.

Policy details

Field	Reading
Insurer	Nordic Commercial Insurance (org. 556xxx-xxxx)
Policy type	Combined commercial
Policy number	COM-4471-2026
Insured	Westgate Machining Ltd (12345678)
Period	2026-01-01 – 2026-12-31
Premium	GBP 8,420 per year

Coverage

Area	Status	Limit / sum insured	Excess	Note
Property	Covered	GBP 1,200,000	GBP 1,000	Buildings + contents at the named premises.
Public & product liability	Covered	GBP 5,000,000	GBP 500	Standard limit for the trade.
Business interruption	Limited	GBP 750,000	NOT SPECIFIED	Indemnity period 12 months — short for equipment with long lead times.
Legal expenses	Covered	GBP 100,000	NOT SPECIFIED	Includes contract disputes.
Cyber	Not addressed	NOT SPECIFIED	NOT SPECIFIED	No cyber section found in the document.

Key exclusions

Flood at the named premises is excluded (Property section, exclusion 4).
Wear, tear and gradual deterioration excluded across the Property section.
Liability assumed under contract beyond the insured's common-law duty is excluded.

Points to review

The policy does not appear to cover cyber — a gap for a business that takes card payments; verify against the full wording.
The business interruption indemnity period (12 months) is short relative to typical cover for machinery with long replacement lead times — verify.
Flood is excluded at the named premises — check whether the location carries flood risk.

Overall confidence: high

How Tedrix automates the policy review

Upload the policy schedule and wording — Tedrix reads them, maps the coverage, lists the exclusions and flags the gaps. You review and decide.

If you are a broker or intermediary checking policies before you advise, or a business reviewing your own cover before renewal, Tedrix does the reading. You upload the försäkringsbrev / schedule and the wording (even a scan), and the tool extracts the header, maps each coverage area with its limit and excess, pulls the key exclusions and flags the gaps to review — with a GREEN/YELLOW/RED verdict. Reading a policy by hand takes real time; with the readout done it becomes a quick check. It describes what the document says and leaves every coverage decision with you.

See the insurance-check tool Try it free on your own policy

Frequently asked questions

What is an insurance policy review?: An insurance policy review is a structured read of a policy document to confirm what it actually covers and where the gaps are. You check the insured, period, sums insured and limits, deductibles, covered sections, key exclusions, conditions and endorsements against the business's real exposures — before a renewal, a claim, or advising a client.
How do you check a business insurance policy?: Gather the schedule, the full wording and every endorsement, then work section by section: confirm the header facts, record each coverage area's limit and excess, read the exclusions and any conditions or warranties, and note where cover is absent or capped. Reviewing the schedule alone is the most common mistake — the exclusions and conditions live in the wording.
What should you look for in a commercial insurance policy?: The insured legal entity and additional insureds, the policy period, sums insured and per-section limits (including hidden sub-limits), the excess for each section, the sections actually present, the key exclusions, and any conditions precedent or warranties. Endorsements matter too — a mid-term endorsement can quietly cut a limit or add an exclusion.
What are common coverage gaps in a business policy?: Underinsurance (a sum insured below reinstatement value), a low sub-limit hiding under a generous headline limit, a missing section the business assumed it had (business interruption or cyber are common), a broad exclusion removing a core exposure, and a warranty the business can't realistically meet. Each can leave a claim unpaid.
What is the difference between a limit and a deductible?: The limit (sum insured) is the most the insurer will pay for a covered loss under a section; the deductible or excess is the amount the insured pays first on each claim. A section can have a per-claim limit and an aggregate limit, and a peril-specific excess that differs from the standard one — both are worth checking.
Does reviewing a policy count as insurance advice?: Describing what a policy says — its coverage, limits, exclusions and gaps — is information, not advice. Under the EU Insurance Distribution Directive (IDD 2016/97), advice means a personalised recommendation on the basis of the customer's demands and needs. Telling someone what a document covers is descriptive; telling them what to buy is a regulated recommendation.
How often should a business review its insurance?: At least once a year at renewal, and whenever the business changes materially — new premises, higher stock values, new activities, an acquisition, or a large contract with its own insurance requirements. A material change can leave the sums insured or the covered sections out of step with the actual exposure.
What is a warranty in an insurance policy?: A warranty is a condition the insured promises to satisfy — for example that an intruder alarm is set, or that minimum security is maintained. Breaching a warranty can suspend or void cover for that section, sometimes even where the breach was unrelated to the loss, so warranties are among the most important clauses to identify in a review.

How to review an insurance policy for coverage & gaps