So you’re insured against the risks that could harm your company.
You’re thriving in a competitive market, and all’s well. That’s great, but you’ve forgotten something, this is a risky world.
As a business grows, its risk profile changes. You buy new equipment to make your firm more efficient, for example. But when you bought it, did you give us a call to add it to your inventory?
Because as you’re growing, it’s logical that the risks you face are also growing.
So just as it’s essential to have your business insured, it’s equally important to follow up with regular reviews to assess if what you have covered is still adequate.
This aspect of running a business very often receives scant attention, but it’s something business owners and managers shouldn’t allow themselves to ever feel relaxed about. No matter how the day-to-day aspects of the business dominate your thoughts, you must remember a thorough insurance program is the thing that keeps your company safe as you grow.
Don’t put it on the backburner, because after disaster has struck is way too late. By then, your business could be badly out of pocket or under-insured, just when you need all the help that you can get.
The latest SME Insurance Index compiled by insurance company Vero suggests that far too many owners are still not assessing their covers regularly and are therefore exposing their businesses to unnecessary risks.
Only 46% of the 1619 SME companies surveyed said they carry out a regular review of their insurance arrangements. And 22% only do so when prompted by their insurance risk adviser or other risk advisers.
About 37% have re-assessed their covers only because of changes or events, 32% say they do so because of premium changes and 10% linked it to having to make a major claim or other “significant event”.
About 40% do not have any form of standard reviews and 8% admitted they haven’t checked their insurance cover since starting their business.
The index also found that 26% undertake policy reviews only when there are changes to the business such as a huge equipment purchase or installation of a new IT system.
While the results of the index are not all doom and gloom, it’s clear regular housekeeping of existing insurance covers as their businesses grow isn’t the high priority it should be for business owners.
We can help you set up a timetable to regularly review your existing cover.
Making it a habit to check your risks not only ensures your business is adequately insured, but it also keeps the business owner up to date on the latest types of cover available in the market.
Business risks are constantly evolving and insurers are continually developing and updating policies in response. Risks are becoming more complex and even dangerous as digital commerce becomes mainstream.
The lesson is obvious: Never “set and forget”. As your business grows, so do the risks. We would be happy to help you carry out regular reviews to make sure all eventualities are covered – always.