Businesses change all the time. What started as a small operation can grow into a larger business with more employees, vehicles, equipment, customers and contracts.
But while your business develops, it can be easy for your insurance to stay the same.
Regularly reviewing your business insurance can help make sure the information on your policy continues to reflect how your business operates. It doesn’t necessarily mean you need to change your cover, but it gives you an opportunity to check whether anything has changed that your insurer or broker should know about.
Why Should You Review Your Business Insurance?
When your policy was originally arranged, it was based on the information you provided about your business at that time. If your circumstances have changed since then, some of the details used to arrange your cover may no longer be accurate.
For example, you may have expanded your workforce, purchased additional vehicles or equipment, moved premises or started carrying out different types of work.
These changes can affect your insurance requirements, which is why keeping your policy information up to date is an important part of managing your business insurance.
Has Your Business Changed?
There are several common changes that could be a good reason to review your insurance.
Have You Bought New Vehicles or Equipment?
As your business grows, you may have invested in additional vehicles, machinery, tools, stock or other equipment.
If you have purchased new assets since your policy was arranged, check whether they need to be added to your insurance. This can be particularly important where equipment or vehicles form an important part of your day-to-day operations.
Have You Taken on Additional Staff?
Growing your team is a positive step for any business, but an increase in employees can also mean your insurance needs have changed.
If your workforce has grown significantly, or employees are now carrying out different roles or activities, it’s worth making sure your insurer or broker has the correct information.
Have You Moved Premises?
Perhaps you’ve moved into a larger premises, opened another location or started operating from a different address.
Where your business operates can be an important part of your insurance arrangements, so changes to your premises should be communicated to your insurer or broker.
Even if your business hasn’t physically moved, you may have started storing equipment, stock or other business property at another location.
Are You Taking on Larger Contracts?
As a business grows, the size and value of the contracts it takes on can grow too.
If you’re now working on larger projects or contracts, it may be worth reviewing your existing insurance arrangements to make sure they continue to reflect the work you are undertaking.
Some customers or contracts may also have specific insurance requirements, so it’s important to understand what is expected before taking on new work.
Have Your Business Activities Changed?
Businesses often evolve beyond what they originally set out to do.
You may have introduced new services, expanded into a different area of work or started working with different types of customers.
If the activities your business carries out have changed, let your insurer or broker know. Your insurance should reflect the work your business is actually undertaking.
Has Your Turnover Increased?
Business growth can also mean a significant increase in turnover.
If your turnover has changed considerably since your policy was arranged, this is another reason to review your insurance information.
Keeping your insurer or broker updated with accurate business details can help ensure your policy continues to reflect your current circumstances.
How Often Should You Review Your Business Insurance?
There isn’t necessarily a single point in the year when every business should review its insurance. Your renewal is an obvious opportunity, but you don’t have to wait until then if something significant changes.
If your business changes during the policy period, it’s sensible to contact your insurer or broker rather than waiting until renewal.
A review can also be useful if your business has experienced a period of growth or if you simply can’t remember the last time you checked the details of your policy.
Keeping Your Insurance Up to Date
Reviewing your business insurance doesn’t automatically mean that you need to change your policy or increase your cover.
The purpose of a review is to make sure the information your insurance is based on is still accurate and that your current arrangements remain appropriate for your business.
If something has changed, your insurer or broker can explain whether it needs to be reflected in your policy and whether any adjustments are required.
Has Your Business Changed?
Your business today may look very different from the business you were running when your insurance was originally arranged.
If you’ve bought new vehicles or equipment, taken on additional staff, moved premises, started carrying out different work, taken on larger contracts or seen a significant change in turnover, it could be a good time to review your business insurance.
At 1st Choice Insurance, we help businesses arrange and review commercial insurance based on their individual circumstances. If your business has changed and you’re unsure whether your current arrangements still reflect how you operate, our team can discuss your requirements with you.
