Twelve months can be a long time in business. Things change on a monthly basis that may impact on your insurance. Unless you’re always thinking about insurance (and let’s face it not many businesses have that kind of time!) changes will occur that aren’t reflected in your insurance policy. Reviewing your insurance on an annual basis means it will keep pace with your business.
Who Should Do the Review?
One of the advantages of using an Insurance Broker is much of the review legwork is completed for you before you receive your renewal notice. At Knightcorp we check your existing policy and see if there is a better-priced cover or a new policy with better coverage for your business. If we find a better policy, we’ll let you know or send out the renewal policy for your existing cover.
Once you receive your renewal, it’s important that you check through the document looking for anything that is no longer current and needs updating. Contact your broker so that we can make the amendments and, if necessary, we’ll review again in light of the changes.
Insurers review the performance of their policies regularly. For Example in WA this quarter there were media reports of homeowners being hit with massive premium increases. This is because their insurer had completed a review of flood risk throughout WA. Homes deemed to be at risk of flooding had their insurance premium increased, in some cases tripled. Your broker knows that not all insurers are increasing their premiums based on flood mapping and should be able to provide you with a suitable alternative to consider.
The insurance industry is always changing. New policies and providers come on to the market regularly. A review will reveal if there is a more suitable, new policy that has been introduced in the past year.
Your broker will also keep you informed of legislative or market changes that may impact on your business and the insurance cover you require. The following is a sample of the changes that have impacted on business insurance in recent years:
- Consumer laws – vigilant regulators are prosecuting businesses more regularly for misleading advertising, deceptive conduct and product recall
- Digital – companies storing sensitive customer data and doing business online need cybercrime coverage
- Globalisation – if you are doing business with overseas companies, you may need coverage for supply chain interruption, regulatory breaches and partner dispute.
Your Business Changes
Some changes in your business are obvious that you need to contact your insurance broker and revise your policy. If you move premises or add a new vehicle or piece of equipment, you will request a change to your policy. However, some changes aren’t as clear. Renewal is an opportune time to review your policy to make sure it is in line with your current business.
Consider the following points and ask your broker if they need to be reflected in a revised policy:
- New service – check that your indemnity cover is adequate to cover any new service or product offering.
- Asset Acquistion - did you purchase or are you looking to purchase any new assets? Is your business growing? Are you downsizing your business?
- Asset Disposal – did you sell or dispose of any assets that are still listed on your policy?
Reviewing your insurance policy ensures your business is not impacted by under-insurance or paying for coverage you no longer need. Working with your insurance broker will ensure you are making the most of your insurance program.