Steps to making changes to your Business insurance
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A change to your business . . .
Negotiating the change
Surveys and risk improvements
Receiving the right documents
1. A change to your business or your premises . . .
Whenever there’s any kind of change to your business, think about whether this could affect your insurance. For instance:
- If the nature of your business has changed fundamentally, you need to re-assess your insurance needs from scratch.
See our tips on when you need cover.
- Even if the change isn’t fundamental, you may need to change the business description shown in your policy. This description must always be accurate, or the insurer may have grounds for turning down a claim.
- You may move. You may operate out of new or additional premises. Any new address needs to be included in your insurance. The broker or insurer must be informed before you move - otherwise you will not have cover at your new premises.
- You may need to buy more insurance. If you’ve bought additional stock or furniture or machines, your sum insured may need to be increased to cover the extra property.
2. Let your broker or insurer know . . .
The basic rule is this. If in doubt about whether something could affect your insurance, inform your broker or insurer anyway. The insurer can then assess the change and let you know if they want to make any changes to the insurance terms. This might involve you paying an additional premium.
3. . . . and let them know as soon as possible
Inform your broker or insurer as soon as you can. Any delay could prejudice your insurance.
4. Timing changes to coincide with renewal
Routine changes that you’re planning or expecting are best dealt with at the same time as your policy comes up for renewal – when there will be other insurance matters to consider.
More info on renewing your Business Insurance.
So – for instance – this is a good time to revalue your property and consider whether your sums insured need to be increased to take account of inflation.
5. If your insurer imposes conditions when you notify the changes
If the insurer agrees to maintain your cover but imposes conditions to this, try to make sure you deal with this as soon as possible. For instance:
| If continuing cover was subject to: | What you should do: |
| A survey by the insurer | When the surveyor contacts you to fix an appointment, agree the earliest convenient date. And remind your broker or insurer if a surveyor still hasn’t contacted you 14 days after you accepted the insurer’s quote. |
| Exclusion of some of your cover (e.g. theft) until after the survey | Try to persuade the insurer to provide the cover, or get you broker to negotiate on your behalf. If this fails, it’s very important to make sure the survey is carried out urgently. |
| “Risk improvements” – such as an alarm or changes to the way you work | Get these done as quickly as possible. But be careful about the cost. There may be a cheaper alternative to what the insurer has proposed that would be just as acceptable. If you think cheaper alternatives are available, explain what you have in mind and try to persuade the insurer or broker to go along with this. |
6. Risk improvements
An insurer may insist on certain security (or risk improvement) requirements at your premises, such as locks that conform to a particular standard that they specify.
- Check first to see if you already comply with the requirement. You may well do, in which case you need do no more.
- If you don’t already comply, and you need to have further equipment installed:
- Make sure you understand exactly what the insurer requires. Ask your broker or insurer to clarify if you are in any doubt.
- If you cannot comply with the requirement immediately, ask how long you have in which to carry out the work. Make sure you are allowed a reasonable period – this can often be negotiated, especially if you will be dependent on suppliers or installers. Make sure too that you are fully insured throughout this period.
- Sometimes, when you get down to actually carrying out the work, you may find that a risk improvement is impossible to implement – or at least is extremely difficult. If so, tell the broker or insurer and explain why. Ask the insurer to lift their requirement for the risk improvement to be implemented.
7. Insurance surveys
If the insurer wishes to survey your premises:
- The insurer’s surveyor should arrange an appointment with you.
- It’s best not to do anything special to prepare for the visit – so the insurers can see how your business operates on a daily basis and, if appropriate, give you some tips for making improvements.
- When the insurance surveyor arrives at your premises, ask to see his/her proof of identity and keep his/her business card so you know the contact details of the person who visited you.
- The surveyor should inspect your premises in a friendly and professional way, and provide you with constructive advice for improving risks in your business.
- Before the surveyor leaves, ask for his/her opinion. Find out what – if any – risk improvements he/she believes are necessary. Make sure you understand exactly what the surveyor has in mind.
- If you think any risk improvements are likely to be particularly expensive, ask the surveyor for advice on how the cost could be reduced. For example, are there any alternative measures that would be cheaper but just as effective? Ask if the surveyor can recommend a supplier to help you.
- Ask when you will get confirmation in writing of any risk improvements. This is always useful to make sure you have properly understood what is required.
- Ask how long you will have to carry out the work. Make sure you are allowed a reasonable period – this can often be negotiated, especially if you will be dependent on suppliers or installers. Make sure too that you are fully insured throughout this period.
- Sometimes, when you get down to actually carrying out the work, you find that a risk improvement is impossible to implement, or at least extremely difficult. If so, explain this to the broker or insurer. Ask the insurer to lift their requirement for the risk improvement to be implemented.
8. Employers' Liability
If, as a result of the change, the insurance now includes Employers’ Liability for the first time, it is vital that you receive an Employers’ Liability certificate of insurance within 30 days from date of the change. This is because you’re required by law to display the certificate at your place of work. So if you still haven’t received the certificate after two or three weeks, tell the broker or insurer you need it urgently.
More info on Employers' Liability insurance . . .
9. New "schedule" or "endorsement"
If the terms of your insurance have changed, check that you receive documentation noting this.
- Many insurers provide a new Schedule whenever there is a change, showing key information such as limits and sums insured
- Or your broker or insurer may issue you with a document (sometimes called an “endorsement”) specifically noting the change.
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