7 Milestones that may mean your insurance needs to change
Now more than ever, businesses can change dramatically throughout the year. With this in mind, your business insurance policy may end up being completely irrelevant from one year to the next, so it’s really important that you understand what changes need to be addressed by your insurance broker.
Here, Tobie shares 7 milestones that might result in a need to change your insurance.
Moving Offices
Most businesses stem from an idea which begins to take place from a spare bedroom or garage. As business grows, they remain until employees are eventually added and the space is no longer fit for requirements.
When you move into your first physical office space, your insurance will require amendments with further cover considerations. This is a perfect time to review your existing insurance coverage and discuss new exposures with your insurance broker.
At this point, you may consider the following:
- Business Contents Insurance
- Public Liability Insurance
- Employers Liability Insurance
- Buildings & Tenants Improvements Insurance
More stock or product lines
With company growth and new office space you may be carrying more stock and goods. Holding the extra stock and goods may give you greater discounts from your suppliers or manufacturing costs, however this leaves you open for larger potential losses from hazards. Perils such as a Fire or Escape of Water could cause catastrophic costs and damage to a business especially if they are left uninsured. A call to your insurance broker to update the sums insured could save a very costly loss.
At this milestone you may want to consider:
- Stock Insurance
- Goods In Transit Insurance
First Employee
Congratulations, you’ve now been able to hire your first employee! For growing businesses, employees are essential as they give owners the opportunity to take a step back and work on the growth of your business, rather than in the business. With growth however comes risk. Employers Liability Insurance is a legal requirement if you employ staff and it comes along with hefty fines if your employees are not protected.
At this milestone you may want to consider:
- Employers Liability Insurance
- Personal Accident Insurance
- Legal Expenses Insurance
On The Road With Company Vehicles
If your business growth requires employees to be on the road or delivering goods, you may want to consider purchasing business vehicles. ‘Road Traffic Collisions’ and Incidents are very common with over £160 million paid out to UK customers every day back in 2019. Although you may contribute to a very small proportion of this figure (or hopefully not at all), a vehicle accident can be financially catastrophic for a growing business. In addition to this, you may need to consider injuries to your employees or even third parties that may approach you for damage costs.
At this milestone you may want to consider:
- Business Car Insurance
- Fleet Insurance
- Personal Accident Insurance
- Legal Expenses Insurance
Getting Online
When turning to automated processes, the next peril to consider is your Cyber Exposure. The majority of businesses run receivables, payroll, payables, employee data and card payments electronically. This alone is a lot of data for your growing company to be responsible for and you have a duty of care to make sure it is protected. If you are unfortunate enough to have a hacker break into your digital systems and steal confidential data, you may be held accountable for any losses incurred.
Cyber Liability for any business with computer systems or trades online is a key consideration.
At this milestone you may want to consider:
- Cyber Liability Insurance
New Business Activities
As a business expands, it is very common to take on new activities in the business. A key example is with Professional Indemnity, that will only cover you for the work that you have declared you undertake. Any work that’s not been agreed by the insurance underwriters that doesn’t fit to your business description or is out of the policy remit may result in occurring claims not being covered.
As your business adapts or takes on new activities, you should schedule a quick call with your insurance broker to confirm the cover includes them.
At this milestone you may want to consider:
- Updating your existing insurers of the changes
Increased Turnover as Business is Booming
Your hard work is paying off and your business revenue has increased, had an influx of clients or you’ve landed that big contract.
The above scenarios potentially mean you are covered only under certain policy conditions, underinsured or even not covered at all. If the turnover has increased beyond your projected figures stated to your insurance broker at the start of your policy, you will need to update them.
At this milestone you may want to consider:
- Increasing Sums Insured & Updating Policies
As mentioned, there’s a number of things which may need to be updated or added throughout the policy period. There is however an easier solution…
Fuelled Remove The Headache of Remembering These Changes
Traditional insurance simply doesn’t fit modern business. We’ve developed an insurance solution that grows with your business, adapts to changes and is flexible around your needs.
Fuelled track over 300 different data points throughout the year and have custom set alerts in accordance to changes that may trigger new insurance requirements. Thus leaving you to get on with business and the growing your empire. We do all this without any API’s or access requests!
If you want to hear more about what we do, please feel free to get in touch at hello@fuelledgroup.com
