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Why is Policy Maintenance So Important?

August 23, 2017

Your business is constantly evolving, so your business insurance should evolve with it. Renewing your insurance policies each year is easy, but in doing so, you could be putting your company’s financial security at risk.

update your insurance policy

Each year, when your policies are due for renewal, it’s worth scheduling a meeting with your broker so you can go over your business needs and any changes that have occurred within your business since you initially purchased your insurance, to make sure you still have the best possible cover for your business.

The following steps will help ensure you’re getting the best bang for your buck.

What Does Your Policy Cover?

Have a look at, or have your business insurance broker look at, your current product disclosure statement and ask the following questions.

  • Does your policy cover things you don’t need cover for?
  • Does the policy exclude any items that you do need cover for?
  • Are the financial caps on your current cover enough to cover you in the event something goes wrong?
  • Have you made any changes within your business that would require more comprehensive/additional cover?
  • Will you be making any changes to your business in the near future, or the next 12 months that would require you to increase/decrease your current level of cover?

These questions will help ensure your insurance policies are carefully tailored to your needs moving forward.

Have Your Circumstances Changed?

Even the most minor things can affect your insurance policy, premiums and the likelihood of a claim being paid out. For instance, if you move premises, acquire new assets or install an alarm system, it’s important you update any relevant insurance policies to reflect these changes.

Are You Happy With Your Payment Schedule and Excesses?

When policy renewal time rolls around, it’s worth reflecting on how happy you are with your current payment schedule and excesses.

For instance, would you rather pay a higher premium if it means your excess would be lower? Or would you prefer to pay a higher excess in exchange for a lower premium?

Also, have a think about the payment options available to you. Perhaps paying your policy once a year is a financial burden on your business and you would like to change it to monthly. Or, maybe you would prefer to pay annually or even quarterly. Talk to your business insurance broker about what options are available to you.

Keep Track of Your Policies and be Proactive

It’s really easy to pay for your insurance and then forget about it. Most people only really think about insurance when they need to find a new policy or when it comes time to renew it. However, business insurance is something that should always be on your mind.

This includes regularly evaluating any changes within your business that could affect your policy, and always working to educate yourself on the terms and conditions of your policy, so in the event you do need to make a claim, you’ll be much better equipped.

If your business insurance is up for renewal, or if it’s time to reassess your current policies, talk to Sydney Insurance Brokers today. We’ll help you find the best cover for your business.