This is where you, as the business owner, choose to under insurer to such an extent that you become a co-insurer on every loss.
What does that mean in real talk; without the right value of insurance for your content/business needs you become a co-insurer on the difference in coverage. If your content are worth $1 million and your insure for $500,000, you become co-insurer on that additional $500,000.
You don’t want to be underinsured and you don’t want to be over-insurered. Connect with your local broker to find the right balance for your business needs.