Your business and the conditions in which it operates are dynamic, making it important to review and update your insurance regularly. Ensuring that you have the right type and level of insurance cover for your business needs as they evolve, means appropriate protection against potential losses and peace of mind that you have quality protection in a claim.
Here are three reasons why you might need to update your business insurance, as well as the risks of not updating it.
1. Workplace conditions are constantly changing
Brought to the fore for many businesses throughout the pandemic, companies faced new challenges when it came to ensuring a safe workplace for their staff and customers — as they are legally required to do. This highlighted the ongoing importance of ensuring your business insurance policy covers you for any new requirements that emerge in your industry.
While workplace conditions have been particularly fluid over the past few years with vacant or changing premises, fluctuating stock levels, and staff movements, business conditions are forecast to continue evolving over the coming years. Change, as the saying goes, is the only certainty and your business insurance policy must also reflect this to ensure you are protected in an insurance claim.
Be sure to let your iNeedCover broker know if any of these situations apply to you, as soon as possible, so they can make any necessary changes to your coverage, securing protection in a claim.
2. Your assets aren’t what they were a year ago!
It’s no secret that Australia has experienced a property boom in recent years. While much of the media focus has been on the boom in residential property prices, the value of many commercial properties has also risen as construction costs increase.
If you haven’t had your commercial property valued recently, you should consider doing so. Due to inflationary pressures on the increase in costs of construction materials, the sums insured nominated at your last insurance renewal could fall substantially short of what you really need in the event you need to make property repairs or rebuild following a claim. A revised valuation can help ensure your level of insurance cover is appropriate, and you won’t be left out of pocket in a claim.
Likewise, it is prudent to check the value of your business assets. Have these been impacted by the rising cost of good and services driven by inflation? This too could impact the amount of business insurance cover you need.
3. You’re offering new products or services
Most businesses will need to evolve their offerings to stay relevant, meet market needs and remain profitable. If you’ve introduced new products or services since you last reviewed your business insurance, you may now have additional liability insurance requirements.
While Product Liability Insurance isn’t required by Australian law, it is strongly recommended for any business working with any type of product. The addition or removal of products will likely require changes to your policy.
Similarly, any changes you make to the types and formats of services you offer should be followed by a policy review to ensure you have appropriate insurance protection in place. Insurance companies have been know to decline claims where a company's business occupation listed on the policy no longer aligns with their primary business activities.
The risk of not updating your business insurance coverage
Failing to review or update your business insurance coverage to cater for your changing business needs can leave you uninsured, underinsured, or both. Either of these outcomes could affect the long term survival of your business in a worst-case scenario claim, or at the very least, cost your bottom line dearly.
Having the right type and level of business insurance coverage will minimise the impact of unexpected events on your business. It can help ensure you’re able to continue on the planned trajectory for your business, without facing destabilising situations should you be without suitable cover to protect you in a claim.
Protect Your Business – Connect with an iNeedCover Insurance Broker
With an insurance broker in your corner, you can relax knowing your business not only has quality coverage designed to respond in a claim, but also the support of an insurance advisor who has your back.
Safeguarding your business is not just a smart move - it's vital for your long-term success. Pair up with an insurance professional who’s on your team. With the expert guidance of an iNeedcover insurance broker, you can proactively manage risks, stay on top of emerging trends, and confidently navigate the ever-changing insurance universe.
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