The importance of keeping your Insurance Broker in the loop

Oct 15, 2020

Insurance policies are structured on the information provided to the insurer by the party seeking to be insured. An individual or business’ unique situation and circumstances are taken into account when a policy is developed, priced, confirmed and applied. It is why good insurance brokers will work hard to develop a relationship with their clients over time, to ensure a depth of understanding so that critical details relating to coverage are not overlooked.

This relationship and a depth of understanding of individual circumstances is particularly pertinent when it comes to commercial insurance policies. A clear knowledge of any activities carried out by a business, any services provided or products sold, any business structures and even previous claims or losses are critical to structuring cover that will provide the optimum outcome in the event of a claim. Insurers that clearly appreciate the level of risk exposure they may face will provide the most hassle-free outcome at the time of a claim.

The performance of insurance policies and risk protection are highly dependent on how well they are structured at the beginning of cover, and on how regularly and accurately they are updated with pertinent information that may affect the claim.

Some common areas where changes within a business may unwittingly affect your insurance policy include;

The purchase of new equipment
The business offering new or additional goods or services
Any substantial increases in revenue
Any recent criminal or other offences
Solvency issues
Occupancy or vacancy of property
Any changes to a customer base
Large changes in stock levels
Any additional or changed business localities
The engagement of labour hire
Any restructure of the business

If these, or any other significant changes have occurred in your business in recent times, it is wise to get in touch with your insurer and have a transparent discussion about if or how these changes may affect your policy or the likelihood of a successful claim.

If you would like to discuss or review your insurance coverage, please get in touch with me or my team at Shield Insurance Brokers Adelaide on 08 8291 2900.

Peter Alderson, Partner, Shield Insurance Brokers Adelaide.

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