As Your Business Changes, Does Your Insurance Still Fit?

A growing business can create new risks without the owner necessarily realising
their insurance needs have changed.

Business insurance is often reviewed once a year at renewal. But for many businesses, a lot can
happen between renewals.

You may have taken on larger projects, purchased equipment, increased your turnover, employed
more people, added vehicles, moved premises or started providing new products or services.
Individually, these can seem like ordinary signs of business growth. From an insurance perspective,
however, they can materially change the risks your business faces.

Small changes can have a bigger impact than expected
Consider a trades business that originally operated with two employees and a single vehicle.
Over time, the business grows to six employees, adds several vehicles, purchases additional
machinery and begins taking on larger commercial contracts.

The insurance originally arranged for the business may no longer reflect what it looks like today.
Similarly, a professional services business may start offering a new area of advice, a retailer may
substantially increase its stock levels, or a business may begin holding more customer information
electronically.

Each change can create different insurance considerations.

Some areas worth reviewing include:

• Your current business activities and services

• Annual turnover

• Employee numbers

• Buildings, contents and stock values

• Tools, machinery and equipment

• Commercial vehicles

• New contracts or larger projects

• Professional advice or services provided

• Cyber and technology exposures

• Business interruption requirements

• Policy limits, excesses and important exclusions
• The cost of replacing business assets can change too

Even if the business itself has not changed significantly, the cost of repairing or replacing property,
equipment and stock may have. That is why simply carrying forward the same sums insured year after year may not always be appropriate. Insurance should reflect the business that exists today — not necessarily the business you had several years ago.

When should you speak with your broker?
Renewal is an obvious opportunity for a comprehensive review, but you do not necessarily need to
wait until then.

If something significant changes during the year, speaking with your broker early can help
determine whether your existing insurance arrangements need to be updated.

At EIB Melbourne, our approach starts with understanding how your business operates and how it
is changing.

If your business has grown or changed since your last insurance review, it may be worth having
another look.

Talk to EIB Melbourne about reviewing your current business insurance arrangements.

General Information Disclaimer
This information is general in nature and does not take into account your individual objectives,
financial situation or needs. Insurance cover is subject to the terms, conditions, limits and
exclusions of the relevant policy. You should consider the relevant policy documentation and obtain
advice appropriate to your circumstances before making a decision about insurance.