Renewing business insurance isn’t just a routine checklist item; it’s a critical moment for small to medium-sized businesses to reassess their risks and evaluate their insurance needs. Collaborating with your insurance broker also ensures thorough understanding of available options and guidance towards the most optimal insurance solutions.
Delmont insurance have put together a 5 step guide to help optimise your renewal experience:
1) Plan ahead (Give yourself plenty of time) — Ensure you don’t wait until the last minute for your business insurance renewals.
Know your renewal date and begin preparing at least 8 weeks beforehand. This early start allows ample time to review your current insurance needs, consult with your broker, explore different options from insurers, and assess any additional coverage your business might need.
It may seem like a long time but depending on your business an insurer may require a site survey before considering to insure your business. Often additional information and multiple reviews are required, don’t leave yourself short by leaving things too late.
2) Review and evaluate your business insurance requirements.
Businesses evolve constantly, and it’s probable that you’ve made adjustments to your operations, staffing, equipment, inventory, or business location. Some new risks may need protection while certain areas may no longer require insurance coverage. To begin, reflect on how your business has changed compared to a year ago, focusing on emerging risks like cyber threats, supplier dependencies, and workforce dynamics.
Evaluate any modifications in your business model, such as implementing home deliveries or utilising contractors, and assess whether your current insurance policies adequately cover associated risks or if additional coverage is necessary.
Additionally, consider unforeseen risk scenarios that could impact your business, pinpointing areas where new risk management strategies and insurance coverage might be prudent.
This assessment will help ascertain whether your current insurance aligns with the scope of your business activities, assets, and risks, or if adjustments are needed to address new exposures, such as cyber threats.
3) Is your current coverage sufficient, or should it be expanded?
Examine your existing insurance policies and their coverage in consultation with your broker. Assess whether these protections remain suitable, adequate, or if they require enhancement.
One significant risk Delmont assists clients with is the potential for underinsured business property and asset values. As asset values and replacement costs continue to rise annually, many businesses’ insurance levels may not be keeping pace, highlighting a critical area for review.
Ensuring your sums insured are accurate is crucial for a successful claim. For commercial property coverage, it’s essential to update replacement costs to reflect current market values and building regulation costs.
Likewise, for plant, equipment, and office fittings, quote updated replacement costs rather than relying on the original purchase price receipts.
Additionally, consider governmental and industry-specific risk and regulatory requirements, which may have changed since the previous year. Ensuring your business has the necessary insurances in place is imperative.
4) Revise your business information and enhance risk management practices
Ensure that the information presented to insurers accurately depicts your current business activities, risks, and mitigation strategies, with the assistance and advice of your broker.
Transparency is crucial when providing details about your business to insurers, as any inaccuracies or omissions could have consequences when filing a claim.
Supporting your risk management protocols with documentation can bolster your credibility with insurers. Therefore, be ready to provide thorough explanations and ensure that all information is meticulously accurate—verify details thoroughly if there is any uncertainty.
5) Seek the optimal insurance solutions tailored to your business
Every business has unique protection requirements, and a one-size-fits-all approach doesn’t apply. Rather than simply renewing or purchasing policies individually as they come due, which is a common pitfall for smaller businesses, take stock of your overall insurance needs.
Insurance renewal periods offer an opportunity for business owners to reassess their coverage: you may decide to introduce new policies, remove outdated ones, or adjust your coverage to align with changes in your business operations. Bundled business insurance packages consolidate multiple coverages into a single policy, offering efficiency and comprehensive support for your business needs. Your broker can also propose alternative strategies for managing business risks, including proactive operational adjustments and exposure management.
The insurance market presents numerous options and considerations, and your broker is best positioned to recommend solutions that fit your specific needs. By understanding and supporting your overall business requirements, they can guide you towards the most effective insurance solutions available.
Most importantly, our role as your broker is to ensure the renewal process is as smooth and profesional as possible. We appreciate the process may seem onerous, but protecting your business and ensuring the best outcome for you, our client stands at the forefront of evertything we do.