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Is your business protected as it grows and evolves?
Keeping your business protected is one of your primary long-term goals, but as your business grows and evolves, so do your risks. In other words, due to a change in needs, a growing business will experience increased internal and external challenges.
Recognising how this growth changes your risk profile and, subsequently your insurance requirements, helps to ensure you understand the risks and are able to choose the right amount of protection that fits your needs.
To help manage your changing risks, here are six steps that can be used to ensure that you have the right amount of protection for your growing business.
- Consider new risks: As your business grows, new risks will emerge, from new products to fire to importing. Make sure you tell your insurance adviser of your plans. They can work with you to identify new risks and the best way to manage them, including through insurance coverage. For example, new data breach laws, supply chain disruptions and compliance risks.
- Review insurance covers and update your insurance adviser: Ensuring you have the right amount and type of cover in place is critical to protecting your business when facing change. Understanding your risks, such as adding machinery breakdown cover for loss of profits, may be needed to protect profits and pay wages, or updating sums insured will assist in managing the financial risks and assist in the ongoing success of your business.
- Updates to sums insured: Make sure your insurance sum insured are adequate for today’s rebuilding or replacement costs. Most building and material prices have increased 20% - 30% over the past 12 -18 months. Inflation, shipping delays and the cost of inputs are all expected to increase over the coming year.
- New cover for new risks: Discussing the new risks and challenges for the business with your insurance adviser may raise issues such as retention of some risks, changing existing insurance cover or looking to add additional insurance cover. For example, if you are beginning to export products to the USA or Canada, has your insurance been upgraded, or is new cover required? With increasing cyber-attacks and new laws, cyber insurance is to be considered.
- Review excesses: Consider adjusting your excess/deductibles. It may reduce your premium and better align with your risk tolerance.
- Partner with a trusted insurance adviser: Work with an experienced insurance adviser who can work with you and discuss the best risk and insurance options for your business.
As a growing business, your insurance covers must be updated regularly.
This can include considering new risks, updating sums insured, adding additional coverage, evaluating excesses/deductibles, and looking for advice from a trusted insurance adviser.
To protect your growing business, why not talk to an insurance specialist about your company’s changing needs today? Find your local adviser.
Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.
A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.
To protect your growing business, why not talk to an insurance specialist about your company’s changing needs today? Find your local adviser.
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Insurance Advisernet
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
All information above has been provided by the author.
Insurance Advisernet, ABN 15 003 886 687, AFSL 240549
This article originally appeared on Insurance Advisernet News and has been published here with permission.
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