Confirm that the figures refer to the same currency, coverage, limit basis and period. Then investigate what the difference means for a plausible loss and the agreed responsibilities.
For: Set a requirement. Commercial education across jurisdictions; no prescribed limits or individual legal, policy or placement advice.
Questions that change the answer.
- Is the shortfall real, or is there a combined or excess policy that needs confirmation?
- What credible loss drove the requested amount?
- Could the missing insurance be obtained, at what cost and by when?
- Who can accept retained exposure and monitor any conditions?
Work through an example.
A fictional buyer requests $5 million while a supplier shows $2 million. Those amounts are illustrative. The buyer first confirms the policy structure and exposure, then considers three possible paths rather than treating any one as automatically adequate.
If you are responding to a requirement
Explain what exists and what remains uncertain. Provide a realistic route to additional cover if available, or propose changes to the activity, contract or commercial terms for review.
If you are setting the requirement
Option A: require confirmed additional insurance before work. Option B: approve the lower limit with a documented rationale and suitable controls. Option C: change the work or responsibility and assess any separate coverage. These options are conditional, not interchangeable.
Your next decision
Choose only after checking the facts. A holdback, liability cap, indemnity or subcontractor policy is not an automatic substitute for the missing insurance; each has different legal, financial and operational limits.
Reference point and scope
UK Government: proportionate allocation and insurance requests. Consulted 7 October 2026.
UK procurement guidance supports a relationship between the assessed risk, market practice and the requirement. The fictional options are original examples, not prescribed limit recommendations.
Original analysis and fictional examples prepared for InsureClause. Policy response and contract interpretation depend on the facts and the applicable rules. Next source review: 7 January 2027, or earlier if the underlying guidance changes.