EOFY Checkup for your business
Many businesses undertake a stocktake at the end of each financial year and taking stock of your Business Insurance and risk-management program is no different.
Start by asking yourself….’What’s changed in my business over the last year?’
Then consider…Have you bought any new assets?…Have you sold any?…Has your business grown?…Has your turnover reduced?…Have you taken on any new contracts?
Your business and your needs change from year to year and with COVID-19 around this year, many businesses have experienced a number of changes.
Your first step is to look at your assets. Ideally when you take possession of a new asset, or have sold one off, you have notified your insurer or your insurance broker to advise them of the change. Make sure you know the replacement value of your asset. At the moment, with stock shortages in a lot of industries, replacement values and wait times can be a bit unpredictable and worth considering.
Watch your growth
Next, it’s a good idea to reassess your level of growth. How much your business grows during the year can impact factors like the amount of stock you carry, your level of staffing and credit level. It’s important to check for any uninsured risks and review your level of cover, making sure it’s sufficient and how it will cover you for any projected growth or change for the year ahead.
Underinsurance can be a massive issue if you have a major loss and haven’t calculated things properly. Research shows that only about a third of people who need Business Interruption Insurance actually take up this type of cover.
Have you recently secured a contract? Have you read the fine print?
Signing contracts often comes with obligations to have certain insurance in place or can potentially negatively impact the insurance you do hold. In our experience, it’s always better to review your insurance in this scenario before you have an issue or have to deal with a claim on your policy. Ensuring you have any compulsory insurance in place is also an essential part of any risk-mitigation strategy.
Planning for a Happy New Financial Year
Your business and your needs will be a constantly evolving thing. For this reason, we always recommend a thorough review of your business insurance each year and a re-assessment of your risk exposures.
A good insurance broker will be across legislative changes including shifts in the market, claim trends, plus new and emerging risks.
A great insurance broker will also understand how your business works, and how they can help you execute your business strategy.
We’ve been working long term with a wide range of businesses in a range of industries and assisted them with their ongoing risk management strategies successfully over a number of years. We add the best value when we work alongside a business’ management team over time. We’d like to thank our current clients for their ongoing business over the last year.
If you’re insured elsewhere, the EOFY is a good time to check in with your insurance broker, take stock of what cover you have and fill any gaps you may have in your insurance program.