As a busy small business owner, having the peace of mind in knowing that your equipment, assets, and reputation are fully protected is crucial. Businesses are constantly evolving, and as your circumstances change, so do your insurance needs.
Failing to update your sum insured amounts based on accurate valuations can lead to insufficient coverage. And when the unexpected happens, insurers might only cover a fraction of the costs, leaving you with the burden of the rest. This is known as underinsurance, and it can be avoided by carrying out regular policy reviews and engaging the advice of an iNeedCover insurance broker.
Cost Pressures Driving your Review? Be Mindful of Underinsurance
The 2023 Vero SME insurance index revealed that almost half (47%) of the Australian businesses surveyed were planning on making changes to their insurance due to inflation and rising supply costs. However, the report warned that without the advice of a professional insurance broker, making updates to a business insurance policy can lead to an increased risk of underinsurance.
An iNeedCover insurance broker can help you avoid the consequences of underinsurance. Dodge these financial headaches and hurdles during a claim by working with a broker to keep your coverage up to date.
Factors to Consider When Reassessing Your Coverage and Policy Terms
You (and your business) are one of a kind. Over time, business circumstances will naturally change; risks evolve, and new ones emerge. Any significant changes in your business, such as expansion, relocation, diversification of services or products, purchase of new assets, or new industry regulations may require updates to your insurance policies.
It is important to partner with an insurance advisor who gets it — someone who’ll take the time to listen, understand how your business has evolved, and provide a range of insurance options that align with your circumstances backed by recommendations to guide your decision making.
Here are some key factors to consider when deciding whether to review your business insurance:
- Changes in Property or Asset Values: Property values and asset valuations can fluctuate over time. It’s essential to reassess coverage limits to ensure they adequately reflect the current value of your business assets.
- Evolving Risk Exposures: Risks faced by businesses can evolve due to factors like a change in the industry landscape, technological advancements, or economic shifts. Reassessing existing policy features can highlight new risks where your business should have coverage. For example, as the business world is beginning to tap into the potential of generative AI tools, companies adopting this transformative technology will have to rethink their risk management practices and the insurance policies required to protect them when things go wrong.
- Rebuilding Costs and Supply Constraints: Rising construction costs and supply constraints have significantly impacted the rebuilding and replacement value of properties. CoreLogic’s Cordell Construction Cost Index revealed national construction costs rose by 11.9% in 2022, and this trend is only continuing. It’s crucial to consider these factors when reassessing your sum insured to ensure your policy adequately accounts for the increased costs of rebuilding in the event of a claim.
How Insurance Reviews Maximise Your Coverage While Minimising Costs
Insurance policies can be complex and filled with intricate wording and conditions. Without a thorough review, gaps in coverage can sneak in, leaving your business vulnerable to financial losses. On the other hand, overlaps in cover can lead to unnecessary costs.
That's where the true power of an insurance review comes in, with the specialist guidance from an insurance broker. During a policy review, your broker will:
- Consider the scope of existing coverage to determine whether it shields your business from potential risks and liabilities.
- Identify areas where additional coverage may be necessary or where existing coverage can be optimised.
- Ensure your insurance policy is tailored to your specific needs to respond in the event of a claim. No cookie cutter solutions here!
Remember, policy reviews can help ensure you’re getting bang for your buck, so if you’re overdue for a review, there is no time like the present!
Don’t Wait! Harness the Power of an Insurance Policy Review
In today's dynamic business climate, the importance of suitable coverage cannot be emphasised enough. It’s also important to ensure you’re not paying for coverage you don’t need, or worse, paying for coverage that doesn’t protect you when you need it most!
Remember, it's never too early to get an insurance review. Regular policy reviews are crucial to ensure your business is protected with high-quality insurance coverage that reflects your current requirements.
When you work with a specialist iNeedCover insurance advisor, they’ll help navigate the complex structures of different insurance policies, providing recommendations on the most cost-effective and suitable options for your specific circumstances. They’ll do the hard work for you to ensure everything that’s important to you is covered so you can rest easy, knowing you have high quality protection in place for your business.
For customised insurance advice in just a few clicks, pair up with your perfect insurance advisor today.
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