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Here’s when you should update your insurer   

07 December 2022    |    By: Phil Browning

Change happens, whether that’s a good change or bad change, sometimes businesses need to make changes in order to adapt or to grow. When changes happen with your business, whether they are big or small, you might need to inform your insurer to let them know to ensure your business is still protected and your insurance policies remain valid. Some changes could invalidate your current policies which could mean you have fewer options available to you should the worst happen or should you need to make a claim.

Much like when you insure your personal vehicle, if you make a change to its engine or change what you use your vehicle for (for example), you need to let your insurer know – the same goes for your insurance when you make changes to your business. Not only will this help to keep your policies in order but making a change on your policy could even save you money in the long run.

If you make changes to your business premises or address, it’s crucial that you inform your insurer as soon as possible. Below is a list of some example changes that you should consider, although if you’re ever unsure your insurer or insurance broker should be able to answer any questions you might have about changes to your business premises.

If changes to your business mean you need to move to a new location or address then you need to inform your insurer, not only to update your contact details but also to ensure your policy is valid at the correct address.

Failure to let your insurer know about a new address could mean your policy is invalid, which means you’ll no longer be insured for the equipment or stock at that address either – a costly mistake should you need to make a claim.One of the most important things to do before closing your doors is to test all your security systems so you know they are working as they should. This includes door locks, CCTV, intruder alarms, fire alarms and other systems you have in place to secure the building. If your offices are managed by a management company, check with them to ensure they have made all the necessary checks to the security systems associated with your business or location.

Likewise, if changes are made to your building, for example, updates to doors and windows, or the installation of a new security system, then you need to update your insurer. In many cases, improvements to your building might even bring down your insurance premium.

Changes to staff, including recruiting more or even losing them means that you might need to inform your insurer, especially if your business is new and has only just started employing people. In this case, it would be necessary to take out an employers' liability insurance policy.

Any changes to the way your staff operate means that your employer’s liability will need to be updated and therefore you should contact your insurer immediately to ensure your business is still covered. A shift to remote and home working across many industries is one clear example of why updates need to be made to employers’ liability insurance policies as staff may need to be covered to work from multiple locations

Sometimes it may be necessary to change your service offering, for example, a gardener may start to offer landscaping services, in which case updates to their insurance policies will be necessary to ensure they are covered to carry out landscaping work. In addition to this, any new equipment, vehicles or assets relevant to the change in service will also need to be considered in the new cover.
If you make changes to your stock, you should notify your insurer, especially if the value of that stock, or the type of stock changes. In both instances, you should contact your insurer or insurance broker with an update as soon as possible so they can make the necessary updates to your policy in order to ensure you’re still covered. Any change in the way you handle or store that stock will also need to be considered, for example, if you move a portion of stock to a new location then you’ll need to let your insurer know so your cover can be adapted.
If your business starts to offer products or services in different territories, then it’s important to let your insurer know so they can make the necessary updates to your policy. There are different laws and restrictions to consider when it comes to shipping products abroad or visiting clients in different countries, and therefore exploring new territories could affect your current insurance policies.

Here we have listed just a few reasons why you might need to contact your insurer with an update to your business, however most changes, no matter how big or small they seem to be will impact the type of cover and the level of cover you need in order to manage risk and protect your business.

That’s why, when changes happen you should contact your insurer or insurance broker as soon as possible to ensure your cover is valid and that it is able to continue. Often you can contact your insurer ahead of time to double-check how these changes might impact your policy – this is a great way to help you budget for any potential increases to your insurance premium.

Many business owners put off contacting their insurance as they worry that making a change could mean their insurance premium increases, however, this might not be the case and changes to your business could mean your insurance premium is reduced. Clear communication with your insurer or your insurance broker is key and is the best way to help you understand how changes to your business could impact your insurance policies.

Phil Browning
Article by
Phil is an account executive at Premierline with several years of experience in finding the right insurance solutions for various businesses, from small startups to large enterprises. He's dedicated to simplifying the insurance process for his clients and ensuring they get the coverage they need. Phil's passion lies in staying up to date with industry trends and developments, which allows him to provide valuable insights to Premierline customers. Through sharing informative content on the Premierline Insight Hub, he aims to empower clients with the knowledge they need to make informed decisions about their insurance needs.
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