Why EOFY is the perfect time to review your business insurance
Published 07 June 2018
The end of financial year is an ideal time for businesses to plan for the year ahead – and that includes revisiting your insurance needs.
Traditionally one of the busiest times in the commercial insurance industry, end of financial year allows businesses to take stock of their coverage as their business grows and develops.
Jacqueline Clark, Team Leader – Mid-Market NSW at Gallagher, says that this time of year offers the perfect opportunity to identify any gaps in insurance coverage to ensure a business is protected for the year to come.
“It is a good time to act and really review what you currently have because you may be inadequately insured,” Clark says.
Even if June 30 doesn’t represent the end of the year for your business, it is always a good time to review your insurance coverage, Clark notes.
While businesses may think that they have left it too late to contact a broker to discuss their coverage, Clark says that for many SMEs, the process can develop quickly. For larger businesses, it may take time to fully arrange cover but by engaging in conversations early, businesses are able to avoid any nasty surprises.
Organise your information
For those dealing with a broker for the first time, Clark says that for initial discussions a broker requires as much information as possible to understand a business. If a broker presents all the necessary information that insurers require, then they can achieve a better outcome in price and cover.
“We need to know a lot about the business and to really understand the business so that we can tailor a package for them that will meet their budget requirements as well as provide the coverage they need.”
Some essential basics
Here are some examples of information your broker needs to know
what has changed since your last insurance renewal?
have you bought any new equipment over the last year or plan on doing so this coming year?
do you plan on expanding your business over the coming year – either branching out into a new premises or a new product line?
Worst case scenario
It is not only a good time to review your insurance coverage but also to think about a contingency plan should the worst happen.
As an experienced broker, Clark says that when she has dealt with large claims in the past it is the clients who are prepared for the worst that are able to get themselves back on their feet.
“I’ve been through some big claims with clients and there is a lot of panic and emotional turmoil at the time, and you can’t make clear and rational decisions when you are going through a lot so having that contingency plan of how you will get back to business again, that is really vital,” Clark says.
“A lot of businesses that don’t have a plan and solely rely on their business insurance, which may be inadequate because they haven’t reviewed it properly, then they will come up short.”