Why Waiting Until the Last Minute to Renew Your Business Insurance Could Be a Mistake
The best Business Insurance Tasmania can offer is one that keeps pace with the businesses it protects. At renewal time, it can be tempting to look at the premium, compare it with last year’s figure and make a quick decision.
But renewing business insurance shouldn’t simply be an annual administrative job. Businesses change. Risks change. Insurance markets change too.
Businesses change. Risks change. Insurance markets change too. Starting the renewal conversation early gives you and your broker time to look at what has changed, make sure the information insurers receive is accurate, and consider whether your existing cover still reflects the business you’re running today.
For Tasmanian small businesses, here are five reasons why leaving your insurance renewal until the last minute may not be the best approach.
1. Your Business May Have Changed More Than You Realise
Think back over the past 12 months. Have you bought new equipment? Taken on employees or contractors? Added a service? Changed premises? Started delivering products or doing more business online?
Individually, some changes may seem relatively minor. Together, they can significantly alter the risks your business faces.
Starting early gives you time to discuss those changes with your broker rather than discovering them during a rushed renewal.
2. Accurate Information Matters
Insurers make decisions based on the information they’re given.
Turnover, employee numbers, business activities, equipment values, premises and risk-management procedures are just some of the details that may be relevant.
Renewal is a good opportunity to check that the description of your business is still accurate. Providing incomplete or outdated information can potentially create problems later — particularly when you need to make a claim.
3. Good Risk Management Is Worth Talking About
Have you improved security? Introduced better workplace procedures? Upgraded fire protection? Strengthened your cybersecurity or backup systems?
Tell your broker.
These changes help provide insurers with a more complete picture of the risk they’re being asked to insure. Depending on the circumstances, that information may be relevant to the terms or options available.
4. More Time Gives Your Broker More Time
Business insurance isn’t necessarily a matter of comparing a few prices for identical products.
Policies can differ in their limits, exclusions, excesses and conditions. Depending on your circumstances, your broker may also need additional information before approaching insurers or discussing alternatives.
Starting the process early gives everyone more time to ask questions and consider the available options without the expiry date looming over the conversation.
5. Renewal Isn’t Just About the Premium
Naturally, price matters — particularly when businesses are watching costs closely.
But the cheapest premium isn’t necessarily the best outcome if important protection has been reduced or removed.
Renewal is an opportunity to look at the overall picture: what you’re protecting, the risks you’re exposed to, your sums insured, policy limits and excesses, and whether the cover remains appropriate for your circumstances.
The Insurance Council of Australia also recommends reviewing your insurance regularly to make sure your level of cover continues to meet your needs.
Give Yourself Time to Make an Informed Decision
Your business insurance renewal date shouldn’t come as a surprise.
Starting the conversation with your broker well before your policies expire gives you time to review what’s changed, correct outdated information and consider your insurance options properly.
At RSM Tasmania Insurance Brokers, we work with Tasmanian businesses to understand their individual risks and help them consider insurance solutions appropriate to their circumstances.
If your business insurance renewal is approaching, getting the conversation started early could make the whole process considerably easier.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart.
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