The Importance Of Reviewing And Updating Your Business Insurance Policies Regularly

As business owners you would know how important it is to protect your business from unforeseen events that could cause financial devastation. That’s why you have business insurance policies in place. But have you reviewed and updated those policies lately? If not, you could be leaving your business vulnerable to risks that your policies no longer cover.

At Clutterbuck Insurance Brokers, we understand that reviewing and updating your business insurance policies can seem like a tedious task, and it is, but it’s one that is essential to ensure your business is properly protected. Here’s why:

1. Your Business is Constantly Changing
   As your business grows and evolves, so too do your risks. If you’ve recently expanded your operations, hired new employees, or added new products or services, your insurance policies may need to be updated to reflect these changes. Failing to do so could leave your business exposed to new risks that your existing policies don’t cover.

2. Your sums insured may no longer be appropriate

   You may have acquired new assets that have not been considered when evaluating your sums insured, or you may think your level of stock insurance is appropriate even though your business size has tripled. These are only some of the examples we see when reviewing a new clients existing insurance portfolio, and more often than not, we see discrepancies between what the client thinks they are covered for, and what is actually insured.

3. Your Insurance Needs May Have Changed
   Similarly, your insurance needs may have changed since you first took out your policies. For example, you may have been responsible to cover leased equipment, and now you are no longer leasing it as you have purchased your own. A policy to cover plant and equipment is generally specific to that piece of equipment and not blanket cover for any equipment the business uses, and some people aren’t aware of that. On the other hand, if you’ve taken on new contracts, your business activities have changed or you have decided you want to wind down into retirement, it will pay to review your policy as you may be paying for cover that is no longer required.

4. You Could Be saving in more ways than one
   Regularly reviewing and updating your business insurance policies can also help ensure that you’re not paying for coverage that you no longer need. By removing unnecessary coverage or adjusting your policies, you could save your business money on premiums. On the other hand it can be extremely costly if you assume you are covered for new purchases or business activity changes and your claim is denied due to not meeting your obligation to disclose such changes to the insurer.

In addition to these reasons, it's important to remember that insurance policies can be complex and difficult to understand. It may be helpful to work with an experienced insurance broker who can help you navigate the process of reviewing and updating your policies. By taking the time to review your insurance policies on a regular basis, you can help ensure that your business is adequately protected and that you're not paying for coverage that you don't need.

At Clutterbuck Insurance Brokers, we recommend reviewing your business insurance policies at least once a year to ensure that your coverage is up-to-date and reflective of your current needs. As an insurance broker specialising in small businesses, we can help you identify any gaps in your coverage and recommend policies that will provide the protection you need.

In fact, we recently wrote about the benefits of having an insurance broker for your small business on our website. As we mentioned in that article, having an insurance broker means you have an expert on your side who can help you navigate the complex world of insurance and ensure that you’re getting the best coverage for your business.

So, if you haven’t reviewed and updated your business insurance policies lately, now is the time to do so. Contact us at Clutterbuck Insurance Brokers to schedule a review of your policies and ensure that your business is properly protected. Don’t wait until it’s too late to discover that you’re not covered for a loss that could have been avoided with the right insurance policy in place.