After settlement of a claim under a typical office insurance policy, the sum insured is automatically reinstated up to what maximum percentage of the pre-loss sum insured?

In a typical office insurance policy, when a claim is settled, the sum insured is automatically reinstated to its full original amount, which is 100% of the pre-loss sum insured. This automatic reinstatement provision is crucial for ensuring that the insured maintains full coverage for future claims without having to purchase additional insurance after a loss has occurred.

This feature supports the principle of indemnity, which is fundamental in insurance; it aims to restore the policyholder to the financial position they were in before the loss. The ability to reinstate the sum insured fully ensures that there are no gaps in coverage, especially in policies relating to business operations where ongoing protection is essential.

Other percentage options are less common in standard policies, as they would not provide the same level of comprehensive protection after a claim as offered by the full reinstatement. Thus, the reinstatement feature at 100% is an important aspect of office insurance that ensures ongoing security for the insured after a claim.