Recently a client discovered that the insurance for their business and business premises had lapsed during the year so they were not covered with insurance!
It was not intentional; they had simply missed the renewal. This came to light when completing their tax work.
Let this month, be the time you do the checks to ensure the following business insurance items are in fact up to date and all is covered.
When it comes to general insurance, not being insured is one issue but the other big issues we have seen are:
- Double insurance – paying twice for the same cover even though it is through the same broker
- Cars – being insured but no longer owned or some cars not insured
- Under-insurance without knowledge – this can be a big issue especially if it means that you have not complied with lending requirements from the bank or your landlord.
- Insurance not matching requirements set out in the lease – this could be seen as a breach of the lease (it may not be seen as severe enough to have the lease terminated but it is not something you want to risk).
For each insurance policy, here is an Insurance Review Checklist:
- Make sure you have a Certificate of Currency for your policy.
- Ask your broker or insurer what is and isn’t covered. You make the decision of the risks you are going to take.
- Check what insurance is required in your loan letters of offer (you would have received this when you took out the loan or had it reviewed). I have seen requirements of the insurance limit being the same as the bank valuation.
- Review your lease as to what is required and confirm with your broker or insurer that the policy meets the requirements of lease.
- Record insurance information and add reminders in your calendar for payment dates and the next review.
By completing an insurance review, you could save lots of heartache, pain and numerous hours of lost productivity should something adverse happen.
