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5 Reasons You Should Review Your Business Insurance Policy

5 Reasons You Should Review Your Business Insurance Policy
5 Reasons You Should Review Your Business Insurance Policy

As any company grows and develops, its business insurance policy should adapt alongside it. Researching and finding the right insurance for a new enterprise is a well-accepted component of starting a new company, but too often company leaders get preoccupied running day to day operations and fail to update their Perth business insurance.

This has the potential to be a crucial error, as leaving your company underinsured opens it up to numerous risks that could affect its financial success. An annual review of all existing insurance policies held by your company is recommended for maintaining complete coverage, but there are other internal changes that should bring about an immediate evaluation of your business insurance.


New or additional premises

Should your company have moved to a different location or into a larger facility, or have gained additional leased office space, your level of insurance cover will absolutely be affected. New locations come with differing levels of risk, from the presence of air conditioning to potential surrounding environmental factors, so without a policy review, your company is underinsured and therefore exposed to undue risk.

The size and type of building you are in can also change insurance requirements, so any increase or reduction in property scale should bring about a policy review.

Items purchased for these new premises also require changes to an existing business insurance policy, such as new equipment, updated technology, or the removal of other items. In the same vein, additional vehicles used for business require sufficient commercial auto coverage.


Changes to staffing

The hiring of new staff should also prompt a review of your Workers Compensation Insurance, as complete cover is vital for secure operations. This is particularly essential within riskier industries such as mining and construction - prolific key industries here in WA that leave themselves exposed and in financial difficulty should an employee have an accident and their workers compensation coverage is sub-par.

Modifications within management teams should also trigger analysis of your business insurance in Perth, particularly if you have a Deferred Compensation plan, Buy-Sell Agreements, or Key Person strategies in place. This might mean new senior management has been brought in, or key business leaders have left the company.

Small business insurance is also affected by staffing changes, for example, a change in directorship, making policy reviews important to remain fully covered.


Increase in revenue

Potential liability increases with the amount of revenue produced by your business, so any rise or decrease in turnover requires a policy review of your existing business insurance Perth. Coverage is interrupted when the amount you're insured for is less than the turnover, making awareness of revenue changes key to ensuring ongoing secure company operations.

An increase in goods or supply of services typically involves more inventory, equipment, or supplies required to handle this change. Changes to company property require accommodating policy changes, making it important to stay on top of modifications to ensure everything is covered.

Premiums can also require an update should there be a decline in revenue increase, as this affects Business Interruption Insurance. This covers any expenses resulting from a claim, as well as trading profit loss after property damage or similar insured incidents.

New services or products

As well as changes to inventory and sales, the addition of new product lines or forms of services offered should prompt a review of your business insurance Perth. Some forms of insurance do not cover all products for sale, so to keep your livelihood protected it's vital to analyse your large or small business insurance whenever inventory changes occur.

Product Liability Insurance is required by any company working with any type of product, and the addition or removal of items will require policy changes. Similarly, alterations to the types and formats of services you offer should result in a policy review.

Almost all companies will need to evolve their offerings at some point, as it's important to stay relevant and necessary in order to remain profitable. Should you have any queries around changes to products you sell or the services you offer, don't hesitate to contact Connect Business Insurance for tailored advice on your specific business insurance coverage.


Updated business practices

It's completely normal and expected for a company to change the way they do business over the years. From updating technology and storing data, to improved marketing practices and safer storage of products, it's likely your business has altered in some shape or form since its inception.

To implement complete coverage, custom-designed to suit your specific needs, it's important to understand the unique risks and requirements your company has. While there are multiple areas all businesses should have insurance for, it is likely there are unique elements to your company that pose potential risk. Knowing the key items vital to the continued success of your company should determine your policies, especially for small business insurance.


Trust in experience with Connect Business Insurance

Understanding the ins and out of all variations of business insurance can be frustrating, and even daunting at times. No one wants to be paying out more in insurance than they actually need, which is where Connect Business Insurance can help.

As long-standing providers of custom insurance coverage for all key industries here in WA, Connect Business Insurance is best placed to provide informed guidance on garnering complete coverage for your specific business. Quality business insurance Perth does not have to be overreaching and expensive, but simply in line with the requirements unique to you and your company.

Working with experienced professionals when obtaining business insurance is the smart move to protect your business correctly and at a fair price. As adept as you may be at running your company, unexpected events can happen at any time, with the potential to decimate an underinsured business. For clear, helpful advice on finding the right coverage for your company, don't hesitate to get in touch with Connect Business Insurance today.

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