When do SMEs Need to Update Their Business Insurance?

When you set up a small business for the first time, becoming fully insured before the launch will undoubtedly be a big priority. While you’ll have an endless to-do list from here on out, comprehensive bespoke business insurance from The Insurance Octopus gives you peace of mind when you’re busy getting your venture off the ground.

From professional indemnity insurance that covers any financial costs should a client decide to take legal action against you, to buildings and contents cover that’s essential for your recovery following events such as freak weather or a burglary, being adequately insured should be a no-brainer.

But once your policy is up and running along with your business, keeping track of your insurance should stay on your radar. Here are some scenarios that would require you to urgently update your insurance cover.

Becoming an employer

Maybe you started out as an independent consultant and business is so good you’ve decided to open a consultancy firm with several members of staff, or you’ve made the decision to take on a part-time shop assistant to help out at your fashion boutique.

Whatever type of business you have, as soon as you take on your first member of staff, no matter how few hours they work, you’re required by law to have employers’ liability insurance. Not having this type of cover included in your policy leaves you vulnerable to considerable fines and even prosecution.

Offering new products or services

It’s normal for businesses to introduce fresh new products and services to keep up with trends and attract more customers. However, keep in mind that these changes might not be covered in your existing insurance.

For example, if you have a beauty salon insurance package and decide to offer a brand-new innovative type of facial, or any new treatment for that matter, this would involve contacting your insurer to check that this procedure is included in your existing policy.

For particularly high-risk treatments, you’ll probably need to have this covered with a specialised insurance add-on. If in doubt, always double check.

Moving business premises

It’s an exciting yet stressful time moving your business to new premises. Whether you’re making the move due to a lack of space at your current location or in order to be present in a more affluent area, you’ll need to contact your insurer to update your details beforehand.

Every building and area is different and if there are any changes with factors such as property value, local crime rate and structure condition, this will all have an impact on the level of business insurance required.

New equipment 

Any new equipment purchased for your business must be accounted for under your insurance policy if you want it to be covered. Investing in state-of-the-art machinery or the latest computer systems can have a massive positive impact on your success.

However, if any new technology is considerably more advanced and expensive, there’s a great risk of this not being covered under the total value of your building and contents insurance or equipment insurance. The safest way to ensure you’re fully protected is to contact your insurance company whenever you introduce any new equipment.

By keeping on top of your business insurance, you can rest assured that your business will be fully protected as it diversifies and grows.

If you’d like to discuss your existing policy or are currently with another provider, but want to find out more about the unique tailored packages provided by The Insurance Octopus, get in touch with our expert business insurance consultants today for further details and a no-obligation quote.