Running a business comes with its fair share of challenges, including ensuring your insurance policy keeps up with your needs. Whether you’re a small business owner, a budding entrepreneur, or a growing startup, it’s critical to revisit your insurance coverage regularly. Outdated policies can leave your business exposed to unnecessary risks - or cost you more than necessary for coverage you no longer need.  

But how do you know it’s time for a review? Here are five key signs that your business insurance policy needs an update, and what you can do about it.  

1. You’ve Expanded Your Business or Opened a New Location  

Growth is exciting, but it can also leave gaps in your coverage. If you’ve expanded your business by opening a new office, store, or warehouse, it’s vital to assess whether your current insurance policy accounts for these changes.  

Why it matters  

Most insurance policies are location-specific. If your new location isn’t included, any damages or claims related to it may not be covered.  

What to do  

• Contact your insurer or insurance broker with details about your new location.
• Ensure your policy includes property coverage for any new premises, equipment, or inventory.
• Check whether public liability coverage extends to the new location, especially if customers or clients visit the site.  

Think of it this way: each location you add is like a new layer of responsibility. Keeping your coverage updated ensures those layers are protected.  

2. Added New Services or Products That Carry Risks  

Have you introduced new products or services? While these additions can attract more customers, they also come with their own unique liabilities.  

Why it matters  

A new product might come with potential defects, or a new service could create unforeseen risks, such as incorrect advice or accidental harm. Your existing insurance policy may not cover these risks.  

What to do  

• Review your public liability and product liability insurance to determine whether additional risks are covered.  
• If you’re offering professional advice, consider adding professional indemnity insurance to cover claims related to errors or omissions.  
• Communicate with your insurer about any new ventures—they can recommend suitable coverage options.  

Don’t assume a generic policy has you covered for every scenario. Your insurance should reflect your business as it stands today, not what it looked like when you first took out the policy.  

3. Updated Technology, Systems, or Data Storage Practices  

Modern businesses increasingly rely on technology, and with great tech comes great responsibility. Whether you’ve added customer management systems, upgraded software, or started storing sensitive data, your insurance needs to reflect this shift.  

Why it matters  

Cyber threats are on the rise, and standard business insurance policies often don’t cover data breaches or system failures. Without the right coverage, a single cyber-attack could lead to massive financial and reputational damage.  

What to do  

• Explore cyber liability insurance to cover risks related to hacking, phishing, ransomware, and other cyber threats.  
• Assess whether your business interruption insurance covers technology or system failures.  
• Speak with your insurer about the potential risks associated with your updated IT infrastructure.  

When you invest in new technology, protecting that investment should be an automatic next step.  

4. Experienced Recent Claims or Near-Misses  

If you’ve recently filed an insurance claim—or narrowly avoided a situation that could have resulted in a claim—it’s time to take a closer look at your coverage.  

Why it matters  

Claims and near-misses often highlight previously unnoticed vulnerabilities in your business operations. By revisiting your policy now, you can address those gaps and prevent larger issues in the future.  

What to do  

• Analyse the claim or near-miss to understand what went wrong and whether insurance provided adequate coverage.  
• Identify any recurring risks and discuss them with your insurer to see if additional coverage is warranted.  
• Review your excess levels to ensure they’re still appropriate for your business's financial situation.  

A claim shouldn’t just be a one-off event—it’s an opportunity to strengthen your risk management and insurance strategy.  

5. Your Premiums Have Increased Without Explanation  

Have your insurance premiums gone up seemingly out of the blue? While rising premiums can reflect inflation or industry-wide changes, they can also be a sign that your policy is due for an overhaul.  

Why it matters  

Paying more for the same policy might not make financial sense, especially if gaps in coverage still exist. Often, insurers offer updated or competitively priced policies that better align with your current needs.  

What to do  

• Ask your insurer for a breakdown of why premiums have increased.  
• Use this opportunity to compare insurers, ensuring you’re getting the best value for money.  
• Consider bundling multiple policies, such as public liability and cyber insurance, to reduce overall costs.  

Rising costs don’t necessarily mean better coverage. Questioning your premiums can unlock new savings and improved benefits.  

Next Steps to Protect Your Business  

Your business is always evolving—your insurance policy should, too. Whether you’ve expanded to new locations, added services, or encountered challenges, an annual review of your business insurance ensures you remain adequately protected against emerging risks.  

Keep in mind that insurance isn’t just an expense—it’s an investment in your business’s future. Taking the time to reassess your coverage could save you thousands down the line.  

Need help navigating your options? Contact an insurance advisor today to ensure your policy matches your business needs. Don’t wait for the unexpected to realise it’s time for a change—start protecting your business proactively.  

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