Just like your car or home insurance, your business could benefit from a change in insurance policy heading into a new year. The last year has led to huge changes for a lot of businesses and for that reason, now could be the perfect time to re-evaluate your current insurance policy. Is it covering what you need, or are there special measures you need in place now? If you’re unsure whether your business is in need of a new business insurance policy, we’ve gathered together some questions to help you decide.
Has Your Staff Changed?
Despite the introduction of the UK’s furlough scheme last year, some businesses have had to take steps to let employees go, meaning that the size of the business overall has changed substantially. Some insurance policies will cover my employees than others, so you may find that you could benefit from downsizing or changing up the policy to suit. On the other hand, some businesses have had to hire new staff over the past 12 months to keep up with increased demand in certain industries – this may also mean needing a new insurance policy to make sure you are adequately covered in all situations.
Have There Been Any Changes In Goods Or Services?
Business plans change, whether through a change in customer demand or simply because you’ve found a new niche in the market to follow. Some insurance policies are designed for specific industries or professions and so it’s important to make sure you have the right one for you and your business. In some cases, minor adjustments could be more than enough to protect your business, but in other cases, you may need an entirely different policy.
For example, businesses that operated within a store and are now online-only will need the appropriate cover to protect their assets and products, but may not need the same level of cover they did before in terms of protecting a shopfront.
Is Business Booming Or Slowing Down?
Some types of insurance will cover your business based on what the perceived value is, including your revenue, and so any noticeable changes in the success of your business could mean you need a new insurance policy, or to adjust your existing one. If you’ve been doing particularly well this year, or have taken a hit, making changes or applying for a new insurance policy could ensure that you have the right level of cover. A policy that is too small for the revenue you’re making won’t provide adequate protection, whereas one that’s too comprehensive could mean you’re paying out for more than you need to.
What Assets Do You Have?
Major changes to the assets you have in your business can have an effect on how effective your insurance policy is. Whether you’ve lost major assets over the year and a smaller policy would be a better investment for the business, or you’ve gained any new assets including land, equipment, materials, or even technology such as laptops or monitors for staff working from home, you should either update your existing policy or look into renewing into a new policy that covers it all.
Have You Conducted A Risk Assessment Lately?
Changes to the way that businesses are working lately, coupled with the ongoing pandemic, has meant that risks of all kinds can be considered higher. Insurance companies often determine the level of coverage they provide and any premiums according to what you need. Even the nature of the risk can change a policy in some ways, so it’s important to conduct a new risk assessment any time you’re looking to renew your insurance or any time that changes have happened within the company.
Going into the new year, it’s possible that business insurance providers will begin looking at COVID-19 related measures to ensure that the companies they’re insuring are doing all they can to keep employees and their staff safe. Proof of these measures could come in the form of risk assessments, so it’s best to keep on top of how your business operates and conduct regular assessments to maintain a high standard of care and to get the right level of coverage.
Does Your Policy Cover What You Need It To?
What all of these questions come down to is one thing – does your insurance policy cover what it needs to after such a tough year? It’s easy to fall off track with your business insurance, particularly when it comes to renewing policies or changing details depending on changes your business has made. From big changes to staff numbers to new assets within the business, you need to know that your insurance policy will fully cover you against every possible issue. If the policy doesn’t cover the new team you’ve hired, or your remote employee’s technology has broken down or caused damage, your business needs to know that the cover and protection is in place.
Take a look at your existing policy to see what it covers and whether it’s ideal for you and your business. For help determining whether this is the case, our team are on hand to help. If you’re unsure as to whether your existing policy covers what’s needed, or you’re looking to get a quote on a new, more comprehensive policy, get in touch with a member of our friendly team, today.