Reviewing Your Insurance Needs

Small Business Liability Insurance
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For many businesses this time of year – January – isn’t exactly the busiest, but it is a good time to catch up and prepare for the new year ahead.

One task that you might want to consider is reviewing your business from an insurance perspective.

Generally we would say that this is a job for a business insurance broker, but there are things you can do yourself during the quite holiday period.

Have your business activities changed?

Did you start – or stop – doing any particular business activities during the past last year? By reviewing this aspect of your business you can help to ensure that you are properly covered whilst not paying for cover that you don’t need.

Certain business activities lead to higher premiums, so if you’re no longer undertaking those activities, letting your insurance broker know could lead to lower premiums this year.

Some activities which can lead to more expensive business insurance include the following:

  • Working at heights (generally higher than 10 – 15m)
  • Working in hazardous areas (such as mine sites, quarries, airports etc)
  • High usage of subcontractors or labour hire

If you have started undertaking any new business activities it is important to let your insurance broker know. Not all activities are covered by all policies, so it’s vital that you keep on top of this to ensure your business is properly protected.

Have your staffing numbers changed?

The public liability cost for some policies is based partly on the number of people employed by the company to be insured.

If your staffing numbers have reduced over the year you may find that your premium will be lower once you let the insurer know.

If you have employed more staff during the year, it is important to let the insurer know to ensure that you are covered. This may mean your premium will increase, but at least you’ll be covered.

Has your annual turnover changed?

Whilst the cost of some insurance policies is impacted upon by staffing numbers, others instead use the annual revenue or turnover of the business as a similar measure.

Generally speaking your premium will decrease with a lower turnover and increase with a higher turnover. So by letting your insurer know you’ll either save money or have increased coverage.

Have you identified any new risks?

Again this is generally a job for an insurance broker, but considering that you know your own business better than anyone else, you are a good place to start.

What keeps you awake at night? Many business owners worry about things such as revenue and profit, but there could be things keeping you up that can be managed through insurance.

If there is anything you can think of that could be a potential risk, speak to your insurance broker about them to see if they are already covered, or if they are something that can be covered.

Your Insurance Broker’s Role

As we pointed out earlier, reviewing your insurance needs is typically a process that is managed by your insurance broker, however by getting a head start at this time of year you can help to ensure you aren’t paying too much for your insurance and you are properly covered for the year ahead.

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