5 Reasons You Should Review Your Business Insurance Policies

5 Reasons You Should Review Your Business Insurance Policies

Do you renew your business insurance or do you review your business insurance? There might be a fine distinction here but one of these strategies may leave you out of pocket whilst the other can get you ahead of the game.

This brings us to the renewal vs review debate because your decision can have a significant effect on the financial security for you and your business. We’ll move on to the reasons why this is so shortly, but it’s worth mentioning that renewing and not reviewing can result in the business being business owners being underinsured.

Underinsurance can be due to a variety of reasons, one of particular importance in the current economic climate is rising inflation as this affects the replacement cost of machinery and equipment. Another reason can simply be that just paying the renewal bill when it arrives is an easy option due to work or time pressures. However, not reviewing your needs, objectives, risks and financial situation annually, is likely to lead to a lack of correct cover or under-insurance

When to review your business insurance

Whilst it’s important to review your business insurance program and the risks and financial situation on an annual basis, there are at least five circumstances when you should contact your insurance adviser and review your coverage immediately. These changes need to be advised to your insurer, to ensure that cover remains in place or the correct additional insurance is purchased.

1.   Changes to your business model

The recent pandemic has caused many businesses to change their business model. This can include, for example, employees working from home, modifications to supply chains, alterations to marketing practices or the storage of inventories. Changes to your business model, however, can have a significant impact on your risk profile, needs, financial situation or objectives and subsequently, the type and amount of insurance cover, sums insured and excesses.

2.   Changes to your services or products

Adding new products or services will need to be advised to your insurers, to make sure that the cover remains in place and is also still appropriate. For example, some products that are installed in aircraft or used in underground mines may not be included in your Product Liability Insurance whilst some services that are different to what you have previously provided are unlikely to be included in your Professional Indemnity Insurance. Regularly reviewing your business operations and products or services supplied with your insurance adviser, will help to ensure that your major financial risks are either managed or insured, minimising your risks and exposures.

3.   Changes to staff

Increasing your staffing levels or hiring new staff or contractors will affect your insurance coverage. That’s because these changes can alter your business risk which in turn, need to be discussed with your insurance adviser. They can tell you whether the risks have changed, also if your insurance policy needs to be updated, or if the policy is wide enough to include any changes planned. Talking to your insurance adviser about changes your planning will ensure that any final decision you make includes risk and insurance input from a specialist.

4.   Changes to your revenue or turnover

Your business insurance policies are based on many risk factors, one of which is the turnover or revenue of your business Large changes in revenue or turnover usually reflect a change in the business, new staff, operations, products or services. So, it’s important to let your insurance adviser know of these types of changes, to ensure that your cover is up-to-date and still suitable for your business.

5.   Changes to your location or premises

All business insurance policies are based on location, postcode, flood potential if there is asbestos, construction, security and the size of your premises. So, it’s essential that planning to purchase or move to new premises is discussed with your insurance adviser. They can provide costs for the new premises and if there are any special conditions or exclusions that you may need to consider, like excluding flood or damage to an asbestos roof.

To ensure your cover remains in force and is adequate, or alternatively in you need a different policy, keep in contact with your insurance adviser, at least once a year. A review is also important when you make significant changes to your business, as mentioned above. Find your local Insurance Advisernet adviser to help you with your insurance policy review and protect yourself and your business.

Important Information 

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to constitute personal advice. This type of insurance product is designed for small and large businesses, that want to be covered against financial loss relating to accidents or personal injury involving contractors or sub-contractors.

We strongly recommend that you consider the suitability of this information, in respect of your objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.

SME Business Insurance Pack

SME Business Insurance Pack

Business Insurance is used by many businesses, but it’s best suited to SME-type operators.

Professional Indemnity Insurance

Professional Indemnity Insurance

Professional Indemnity (PI) Insurance isn’t just limited to typical ‘professions’ such as accountants, engineers, lawyers, doctors and architects. Essentially, anybody providing advice or consultancy services for a fee has an exposure that needs to be considered.

Liability Insurance

Liability Insurance

Despite the very best of intentions, accidents can still happen in any business. Public and Product Liability Insurance  protects you against claims for personal injury or damage to a third party.

Find your local Insurance Adviser

Talk to your local Adviser to get advice about your insurance needs and to get a quote