Top 6 things to consider when renewing business insurance

When you already have a lot on your plate, organising your business insurance renewal is the last thing you want to do. But insurance really is one of those things that you need to sort and tick off your ‘to-do’ list to make sure you have the proper protection in place.  

In fact, in the UK, 2.4 million SMEs are working without any kind of insurance to protect them should the worst happen — and you don’t want to put your business at risk.  

In this Bionic guide, we’ll walk you through everything you need to know about renewing your business insurance.  

What does it mean to renew your business insurance policy? 

Simply put, renewing your business insurance policy means extending the protection for your business for another year. Plus, it’s a great opportunity to update your cover, making sure that everything aligns perfectly with the current needs of your business.  

When you renew your policy, you’re essentially ensuring that your business is protected against unexpended events — whether it’s damage to your property because of a storm, liability claims or anything else in between.  

How often should you review your business insurance policy? 

Life moves fast — and so does your business. What might have been a perfect policy for you last year might not reflect where your business currently stands on the calendar.  

Every 12 months, your business insurance policy will need to be renewed. But, if you need to adjust your coverage — such as increasing or decreasing your cover limits or adding new options — it might be a good idea to renew earlier once these changes come into force. Sometimes, changes in your business operations, expansions or new ventures may also prompt an early renewal!  

Why is renewing your business insurance policy important? 

When it comes to renewing your policy, it’s so important it’s sorted on time. But there are a few other reasons why you need to make sure it’s in place: 

• Continued protection —  Renewing your policy ensures that your business remains protected against any unforeseen risks and liabilities, such as damage to your stock or premises or legal costs if a customer is injured on your property, for example.  
• Legal compliance — As a small business, you’re only legally required to have employers’ liability insurance if you hire any staff who aren’t immediate family members. This covers your business in the event one of your employees claims they’ve suffered an illness or injury as a result of working for you. If you don’t have this insurance in place, the Health and Safety Executive (HSE) can fine you £2,500 for every day your business goes unprotected. 
• Peace of mind — Knowing that your business has the right levels of cover in place provides peace of mind for you, your employees and any stakeholders. It also allows you to run your business without the constant worry about the potential financial consequences of something going wrong.

What are the risks of not updating your business insurance policy? 

When your business is going well, it's easy to forget that disasters can happen. But what exactly are the risks of not updating your insurance policy? 

Not enough coverage 

Picture this — your business faces a major setback like a fire on the premises, or hot food is split on a customer's lap. Without the right insurance cover in place, you could find yourself taking on the full financial burden of repairs, legal fees or compensation payouts.  

Without cover, this leaves you exposed to risks that can have serious consequences for your business's health and financial stability, especially if your business is underinsured.  

Unnecessary costs 

Hanging on to outdated policies could mean you’re paying for cover that you no longer need or that doesn’t actually align with your business operations.  

This can lead to unnecessary expenses eating into your bottom-line, resources that could be better spent elsewhere in your business, such as testing out new stock or promoting employees. Regularly checking and updating your policy ensures you’re only paying for cover that is truly essential for protecting your business against the risks it’s currently facing.  

Denial of claims 

When the unexpected happens, and you need to make a claim, discovering that your policy hasn't been updated properly can cause a headache.  

Insurance companies may deny claims if your cover doesn’t actually reflect your business's current needs or if you’ve failed to disclose any relevant information, such as the amount of staff you employ. This could leave you in a bit of hot water if you don’t have the financial assistance you were counting on to help recover from a loss.  

Reputational damage 

Your business's reputation is invaluable, and in this day and age, news can travel fast. 

Any perception of irresponsibility or negligence when it comes to insurance can tarnish your business's reputation among clients, partners and potential customers. Whether through word of mouth or online reviews, a reputation for being under or poorly insured can erode the trust and credibility you’ve worked so hard to build.  

Direct financial loss 

Ultimately, the biggest risk of not updating your business insurance policy is the potential for direct financial loss. Without proper cover, your business could face significant financial repercussions in the aftermath of things like accidents, lawsuits and property damage.  

These expenses can quickly add up, impacting everything from your cash flow to your profitability and long-term viability.

What to consider when renewing your business insurance policy 

When it comes to renewing your policy, there are a few key considerations you’ll need to think about:  

• The value of your current policy — Take a closer look at your existing policy to assess its current value. Has it adequately protected the needs of your business? Do you need to make adjustments going forward? These questions are vital to understanding whether you’re really getting what you pay for.
• The reliability of your current provider — Evaluate your current insurance provider's track record for reliability and how their customer service is. Have they been responsive and supportive when/if you’ve ever needed assistance or filed a claim? A dependable provider can offer peace of mind and assistance when you need it the most.
• The cover you need — Carefully review the cover options that you currently have on your policy — you’ll need to make sure they align with the current needs of your business. Consider things like your liability protection, business interruption insurance and maybe any other industry-specific requirements you may need, such as deep fat fryer cover if you run a takeaway.
• The cost — While cost is important, it’s essential that you balance cost with the level of coverage that your business requires. Compare business insurance quotes today with a member of our tech-enabled team at Bionic and we’ll help you find quality cover at a great price.
• Have your business requirements changed? — Have you expanded your operations, introduced new products or services or experienced growth? These changes may mean your business insurance policy needs changing, so it’s one to keep an eye out for.
• The fine print — Don’t overlook the details! Take the time to carefully and thoroughly review the terms, conditions and exclusions outlined in the fine print of your policy. Look for any limitations or restrictions that may impact the way your business operates, and if you need to, get some clarifications from your insurer if anything is unclear.

What is automatic renewal? 

When you sign up for automatic renewal with your insurer, you’re essentially giving them the green light to renew your policy automatically when it expires. This means you won’t have to initiate the process manually.  

Once you opt in, your insurer will typically send you an email or letter prior to the renewal date, giving you information on how much your upcoming renewal will cost. It’ll also give you some information about any changes to your cover or premiums. If you’re happy with the terms and don’t need to make any adjustments, then you can just sit back and relax!

What is manual renewal? 

A manual renewal process takes a more hands-on approach. Similar to the automatic renewal process, you’ll receive a quote 30-60 days before your current policy runs out. You’ll then have to manually accept or decline the renewal offer.  

Typically, if you’re on a manual renewal policy and don’t respond to the renewal invite, your policy will be lapsed.  

Consider your business insurance renewal with Bionic 

Making sure that your business insurance renewal is set before your current policy is up is so important. But it’s also essential to make sure that your policy meets the current needs of your business, or you could be caught out.  

At Bionic, our dedicated insurance team is on hand to help you find the right cover for your business — start a quote online today. 

Or, head over to our business insurance guides page for everything you need to know about insurance for your business and then some!