As businesses change and grow, the insurance coverage, type of insurance, and risks change as well.
For example, a sheet fabrication business that conducts its work in a factory could expand its installation services to include welding on-site. This would increase the company’s risk of fire and require a review of the insurance policy to ensure welding is covered.
An electrical goods importer could add a new line of products, requiring a risk and insurance review and potential changes to the insurance mix and amount of cover. For example, product recall insurance may be used to manage this risk.
Changes that may have an impact on insurance cover:
- adding or discontinuing products
- Additional locations or premises
- exporting to new markets
- importing new materials or products
- providing new services to clients
- purchasing or selling assets or part of your business
- significant changes to manufacturing processes.
Significant changes
Significant changes to the business will require either an endorsement to a client’s current policy or the addition of a new policy or a change in sum insured to reflect the increased or decreased business risk.
When significant changes occur, you will need to discuss with your insurance adviser, they can then negotiate with insurers on your behalf to obtain the required level of cover.
Updating your Cover
It’s the job of your insurance adviser to work with you to assess new risks and advise of the best way to manage any additional risks. To do that effectively, you should schedule regular updates with your insurance adviser to discuss planned changes or changes to the business that have recently happened.
This will help ensure that the right amount and type of cover are in place and that key financial risks continue to be managed.
To learn more about which contract works insurance is right for you, Contact Lewis Insurance Services on 07 3217 9015 or send us an email by clicking here.
This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net
Disclaimer:
This information and any accompanying material does not consider your personal circumstances as it is of a general nature only. You should not act on the information provided without first obtaining professional financial advice specific to your circumstances and considering the Product Disclosure Statement.