We’ve made it to the end of the year. Now is one of the best times to review your insurance and ensure that your cover is keeping up with the changes in the market and within your business.
Many business owners tend to simply renew their policy before it expires. However, renewing your policy without carrying out an audit isn’t wise. You’ll want to take into account changes that have happened in the last year and pay close attention to any anticipated changes that could occur in the new year. This will not only ensure that your cover is sufficient but also highly likely cost you less in the long run. If you aren’t sure whether your current cover is still right for your business, seek your insurance broker’s advice.
Here are some key things to keep an eye out for:
- New Equipment and Building Insurance
If you sold, bought, extended, or upgraded any sort of building or equipment that relates to your business, let your insurance broker know. Should anything happen to your new building, an extension, or additional contents, you run the risk of not being covered for it if you have not amended your policy to reflect those changes. - Changes to employee numbers and revenue
Some policy premiums are based on your turnover as well as the number of staff on your payroll. If your revenue, profits, and staff level have fluctuated since the last time you’ve reviewed your premium, ensure you let your insurance broker know. - Changes in stock levels
Consider the fluctuations in stock that may occur across the year. The precise stock that you have at renewal time is unlikely to be an accurate representation. For example, if you’re in retail or manufacturing, you’re likely to be carrying increased stock levels over the festive season. Ensure that your policy covers you especially during peak periods of the year. - Changes in operations
Perhaps you’ve expanded the scales of your operations to cater to a different market, have a wider range of products and services, or now work alongside third parties and subcontractors. If you’ve started using subcontractors in your business, it’s important to be aware of your legal liabilities. For example, you might be liable for any injuries that occur in the course of their work. So if your operations have altered in any shape or form, it is best to check whether or not this would affect what you need from your insurance policy.
With the holiday season fast approaching, it is a busy time of the year for many of us. However, it is a good idea to take the time to review what is in place and what is required. We can help you with reviewing your existing policies to ensure you are fully covered. If you have any doubt or simply haven’t had a review in a while, contact us and we’ll gladly assist you.
Disclaimer: This article provides information rather than financial product or other advice. The content of this article does not take into account your objectives, financial situation, or needs. Please seek professional advice from your broker before acting on any information.