Company has extremely limited insurance (5)
I believe the answer is:
cover
'insurance' is the definition.
(I've seen this before)
'company has extremely limited' is the wordplay.
'company' becomes 'co' (abbreviation).
'has' means one lot of letters go next to another.
'extremely' becomes 'very' (very can mean extremely or considerably).
'limited' means to remove the last letter (a limited or incomplete form of the word).
'very' with its final letter taken away is 'ver'.
'co'+'ver'='COVER'
(Other definitions for cover that I've seen before include "Mask, hide" , "Fielder" , "Totally obscure" , "Lid, travel (distance)" , "Lid or shelter" .)