How you benefit by keeping your insurance details up to date

Your business and the conditions in which it operates are dynamic. But, does your insurance coverage reflect those constant shifts? It might sound time-consuming, but keeping it updated means you’ll be richly rewarded. 

As your broker/advisor, if we’re working with outdated information about your business, we’re not able to deliver customised protection against risks. Here are some pitfalls when you don’t update us: 

• Charged higher premiums
• Paying for cover you no longer need
• Not protected for new assets, products, contracts or services because they weren’t advised to your insurer
• Finding out redundant or outdated equipment may no longer be covered
• Leaving you underinsured, so you’re substantially out of pocket when you need to make a claim, and
• Seeing your claim knocked back because you didn’t have the right (or any) cover.

That’s the impact of doing nothing. The rest of this article will guide you on what needs updating and when. This will help make it second nature for you to fulfil any obligations imposed upon you by your insurer.

Workplace conditions constantly change

Workplace conditions have been particularly fluid this year due to the pandemic. Have you closed your premises, left them vacant or opened elsewhere? Unoccupied premises with reduced security could be an issue. Your assets might be different from when you last renewed your policy, such as if you now have lower stock levels, too. That means you could be over-insured. Perhaps you’ve hired staff or let others go – what impact will this have on you workers compensation & business insurance policies? If you’ve started hiring subcontractors, we’ll need to know so that we can analyse the impact upon your business.

SafeWork Australia offers some great prompts for employers whose staff work remotely due to the pandemic. That creates a whole new set of obligations and responsibilities, including about the safety of their home workstation. Their mental health is also an issue. Other factors are if they’re taking work computers home. Does your insurance cover that? Your premium might be based on that asset being at your work premises, not elsewhere.

Any changes with your assets?

Speaking of business assets, here are some other considerations. They may no longer be covered as they age, become obsolete or redundant. That includes outdated software, which the provider no longer updates or supports (or is pirated!) thus leaving you vulnerable to ransomware, cyberattacks (or legal action). You should let us know if there have been any incidents – whether or not you report them to the police or other authorities. As well, reflect on whether you’ve invested in new plant or equipment for your business. We can ensure your business insurance policy covers those valuables. 

It’s good practice to keep an inventory of your business assets and schedule reminders to check it’s up to date. Match this with your policy at renewal time. That’s when to check the inflation rate, and, where needed, the exchange rate (for overseas-sourced assets) to verify you’re insuring the value of your assets. Usually, your policy won’t compensate you for depreciation of a change in market value. Calculating the correct amount of insurance for your business is critical and will also be impacted by the type of cover you have – this is one of most important areas where we can assist

Introducing new products and services

In the past year, you might have introduced new products and services or even called it a day on others. It might sound minor, but these may constitute a change to your operations. For example, if you’ve been selling hand sanitiser and it causes a nasty reaction on users’ skin, your insurer could deny you coverage against any claims if that’s materially different to your current product range. That’s if you hadn’t told your broker or advisor about this new product line. 

You’re obligated to tell your insurer about changes in your business circumstances and anything that could have a material impact on the insurance company’s decision to cover your business. Don’t be on the back foot when it comes to insurance – we’re here to help.