It is very important that your insurance program grows along with your business. Outdated or neglected insurance portfolio’s generally will open you up to under-insurance, or even worse gaps in your coverage where new exposures have not been factored into your covers. A perfect example would be, if your insurance policy was taken out on the basis of general domestic carpet cleaning, but over time you had moved in more specialist cleaning such as mould remediation or meth lab clean-ups, if you have failed to advise your insurer of these changes, it is highly likely that these specialist activities will not be covered, leaving your business facing some fairly significant exposures.
As a minimum, insurances should undergo a full review each year on renewal. If any changes occur to your business during the year, it is very important that you contact your insurance provider to advise them of the changes and ensure that your insurances are brought into line with the new requirements of your business.
What to look out for when changing your insurance
A very common mistake made when switching insurers or insurance providers is to base your decision purely on the premiums on offer. The most important thing to remember about any form of insurance is that it is only going to be effective if the cover is extending to protect against the majority of the common exposures that your business faces.
Here are a few key points to look out for when changing your insurance:
- Understand what covers are important to your business and ensure that they are included in the new program. Ask plenty of questions if you are not sure and request as much information as possible so that you can fully understand what the new cover includes/excludes.
- Make sure to compare the scope of the covers before comparing the premiums. Often cheaper premiums will mean that important covers have been omitted or excluded. Always try to make apples for apples comparisons with the policy coverage before comparing the premiums.
- Try to avoid continually shopping your insurances around. Insurance companies value loyal customers and they are much more likely to view borderline claims in a favourable manor if you have built up some history with them.
- Avoid sacrificing service. Budget or online insurers are now offering all classes of insurance including business insurance. Sacrificing professional advice and experience for stream line convenience can leave your insurance portfolio missing key covers leaving your business exposed.
- Engage an insurance professional to source covers and approach insurers on your behalf. A skilled and experienced broker will know exactly what covers you require and the insurers that offer the broadest possible covers, at the best price to ensure that your insurance program matches your requirements. This will mean that you have one contact in relation to all of your insurances, along with someone doing all the hard work and running around for you saving you the trouble and time. This will take the guess work out of sourcing insurances and give you the confidence that you insurances have been tailored to match your requirements.