DON’T SET & FORGET
EOFY is an opportune time to review your insurance policies. Chat to your broker to make sure you still have the right covers for your unique needs..
Times have changed, your insurance may need to change too
Many SMEs have undergone unprecedented turmoil in the past six months with the fallout from COVID-19. From businesses closing, changing the way they transact, staffing matters, supply chain disruption… the ways businesses have had to adapt is endless. And with these changes, comes the need to make sure the business is still properly protected with the right insurances.
If your business has changed at all, then your insurances may need to change too. Remember: It is a condition of cover that the insurer is notified of any changes. Failure to do so could result in any payout being reduced, claim denied or the contract cancelled.
For example, you may need to look at compulsory insurances – workers’ compensation and Compulsory Third Party – if you now/no longer employ staff or now/no longer operate business vehicles.
In addition, the range of covers you need to mitigate risks unique to your business may require review.
- Has the nature of your business changed (e.g. changed services or sector)?
- Has the business structure changed (e.g. partnership dissolved)?
- Has the way you operate your business changed (e.g. moved to online retailing)?
- Have you purchased new equipment or vehicles?
- Have you moved premises?
- Changed your workforce (e.g. no longer employ staff or hired sub-contractors)?
- Have you disposed of any assets? What is the estimated turnover?
The value of your assets, including property, should be reviewed (ensure your business inventory and valuations are up-to-date and reflect current costs) so your sums insured are adequate. You should also check to see you are still meeting any requirements under cover (e.g. what are the implications if your property is now vacant).
Policies to protect assets and revenue – such as Business Interruption, Cyber Liability, Trade Credit or IP – should be updated to reflect the way you do business.
Are you still holding the right liability covers such as public and products liability, D&O and professional indemnity?
Now is the time to chat with your broker to:
- Assess the risks to your business – from physical risks (flood, bushfire, crime rate) to financial and reputational risks.
- Discuss risk mitigation strategies including transferring risks to insurers.
- Consider policy options including features, coverage, claim limits, excesses and premiums (some covers may no longer be available or cover the same risks or at the same levels, while some premiums may have risen significantly, due to COVID-19).
- Ensure you know and understand policy inclusions and exclusions (what the policy does and does not cover, and in what circumstances).
- Confirm you are meeting your requirements under cover i.e. contract terms and conditions (including disclosure).
- Check sums insured and limits of liability reflect values and risks.
Your EBM Account Manager has the expertise and resources to guide you through the assessment process and help you protect your business from the unique risks you face operating in your specific industry.
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