Although we’re all cautiously optimistic about 2022, by now, most of us know better than to expect a world free of uncertainty. As you start the new year however, there are some things you can do to help you feel a little bit more in control and prepared for potential incidents. One of these is undertaking a thorough review of your insurance cover. Some general housekeeping of your insurance policies can help you be sure the policies you have are correct and provide you with the protection you need. If you’re not sure where to start, we’ve broken it down into 4 easy steps for you...
Step 1: Check the basics
Some of the easiest details to overlook on insurance policies are sometimes the most important. Basic details like your name, your business’s name, and address can be easy to skim over, but if incorrect, can cause unnecessary hassle at claim time. Some things to check include whether all entities are shown, if the spelling is correct, and whether the details are shown in full.
Step 2: Review your business’s description
Your business description is another area which is very important to keep up to date. Your insurance documents should clearly state all the services your business provides. If you are currently providing services which are not listed on your insurance policy, or conducting activities which are outside the scope of your qualifications, you may not be covered under your Professional Indemnity Insurance. This is particularly important if you’ve taken on new staff members or contractors who provide additional service(s) which are not noted on your insurance policy. Even if the contractor has their own insurance policy, your client could still sue you for negligence of your contractor.
Step 3: Assess the limits & sum insured
The sum insured (limit of indemnity) on your Professional Indemnity Insurance is another area you’ll need to revisit from time to time and keep updated. In the same way that your work may change over the years, your sum insured should be reviewed so you feel comfortable the limit is still adequate for your needs, you should also be aware of any obligations you have, such as a regulatory requirement, a trade association’s requirements or even a contract you may have signed that requires you to maintain specific sums insured.
Step 4: Check the coverage details
There’s a lot more to your Professional Indemnity policy than you think – PI has several features which should be understood to ensure you have adequate protection. Some of these features we’ve outlined previously, but it doesn’t stop there. Some other areas of coverage you may need to look into include whether your policy covers you working out of various locations and whether work performed by contractors is covered.
The importance of keeping insurance updated
Taking the time to review some key details on your insurance documents can save you a lot of headache if you needed to make a claim. This is especially important if you’ve been in the habit of simply paying your renewal year after year without paying attention to what the policy documents say. Sometimes, minor oversights can be enough to deem a policy invalid, and unfortunately, some business owners only come to know of this when they need to make a claim, and are required to pay significant legal fees to defend themselves.