It’s a common assumption that as a business owner, you only need to contact your insurance broker when you need to renew your policy or make a claim. The reality is however, there are many things that can change in your operations that your insurance broker needs to be made aware of. Regularly keeping in touch with your broker can help to make sure you’re not left with any gaps in cover, and are also getting the most value out of your broker’s service.
Here are some of the instances where you will need to contact your broker to ensure your insurance is up to date and correctly reflects your business’s current situation.
You experience a complaint which may lead to a claim
This is one of the most important scenarios where you should promptly contact your broker. If your business is involved in providing a service or advice, and a client hints that your advice caused them financial loss or damage, it could be the first sign of a Professional Indemnity Insurance (PI) claim. Even if you feel their dissatisfaction is minor, or that their allegation has no basis, a conversation with your broker can help make sure you’re being honest and transparent and will have minimal issues if you do need to make a claim.
You expand your workforce
Expanding your workforce is an exciting time for your business but it also means there’s some homework on your part. Whether you’re engaging someone as a sub contractor, or employing a permanent employee, you should contact your insurance broker to have a discussion about the changes to your risk profile and what steps you might need to take.
It’s easy to assume that your sub contractors’ actions are covered under your insurances automatically, but this may not be the case. Without the appropriate cover in place, if a sub contractor you engage does make a mistake in their work or advice they undertake on your behalf, or are held responsible for bodily injury to someone, your business could be left with the financial burden of a lawsuit. Upon contacting your broker, you will be advised whether you have cover under your policy for the actions of your subcontractor and also whether there is cover for the sub contractor’s own liability, or if they need to take out their own insurance.
Your services have changed
If there has been a change to the products and/or services your business offers, then your insurance broker should also be notified of this to ensure it is covered under your policy. This also includes hiring a new staff member who is qualified in a different area and provides a service in line with their qualification. Your broker will determine whether changes need to be made to your policy mid-term or if it can wait until your next renewal. Remember, if a service is not listed on your schedule, it may not be covered under your PI.
Your revenue has changed substantially
When you take out an insurance policy for the first time, you’re usually asked to nominate your annual revenue, and it’s possible you’re asked to report this amount at each renewal as well. You will need to notify your broker if there is a substantial change to this amount during the year, for example if you win a big contract or client.
You’ve moved premises or renovated
Your insurance broker also needs to be made aware if you move your business premises, renovate or even purchase additional office equipment or furniture. This is especially important if you have a Business Insurance policy that covers your office equipment and/or physical premises, as your sum insured will need to be adjusted to reflect the value of your new equipment.
As you can see, there are many situations where your broker may need to be notified of changes to your business. The factors listed above aren’t an exhaustive list, and there may be other instances where you may need to update your insurance. If anything else does change in your business, and you’re unsure about whether your insurance needs updating, a quick call to your broker can help clear up any confusion you might have.
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This information is intended to provide general insurance related information only. It is not intended to be comprehensive, nor does it, or should it (under any circumstances) be construed as constituting legal advice. You should seek independent legal or other professional advice before acting or relying on any of the contents of this information. Aon will not be responsible for any loss, damage, cost or expense you or anyone else incurs in reliance on or use of any information contained in this article.