Duty of care
Why honesty is key when renewing your business insurance
As an independent insurance broker, at Insurance Experts we prioritise one thing above all else: protecting our clients. This includes ensuring you have the right coverage when renewing your business insurance. But renewing isn’t just about signing on the dotted line. It’s a key time to reassess your risks and update your policy accordingly.
What is duty of care in insurance renewal?
Duty of care is to disclose all material information to your insurance provider during the renewal process. Material information refers to any details that could influence the insurer’s decision to offer coverage or set the premium price. This includes:
• Changes in your business: Have you expanded your services, increased your staff, or added new equipment?
• Claims history: Have you filed any claims in the past year?
• Risk profile: Have there been any changes to your security measures or the nature of your business that could increase risks?
Why is duty of care important?
By fulfilling your duty of care, you ensure several significant things:
• Accurate coverage: Disclosing all information allows us as your broker to tailor your policy to your current needs. The right coverage protects you financially if the unexpected happens.
• Fair premiums: With full disclosure, your insurance company can accurately assess your risk and set a fair premium based on your specific circumstances.
• Claim approval: If you fail to disclose vital information, your insurance company may have grounds to deny a claim, leaving you financially vulnerable.
The risks of non-disclosure
Unfortunately, neglecting your duty of care and not disclosing the necessary information can have serious consequences:
• Policy cancellation: If the insurance company discovers non-disclosure, they may cancel your policy entirely, leaving your business exposed.
• Claim denial: As mentioned above, a claim could be denied if crucial information was not revealed.
• Increased premiums: If information comes to light later, your insurer may back-charge you for the increased risk and potentially raise your future premiums.
Time for collaboration
Renewal time is a valuable opportunity to review your insurance coverage. Working with our business insurance team, together we can:
• Review changes: Discuss any changes in your business and how they impact your insurance needs.
• Risk management: Explore ways to mitigate risks and potentially lower your premiums.
• Policy review: Ensure your current policy reflects your current needs and provides adequate coverage.
Working with Insurance Experts makes a difference:
As your independent broker, we’re not beholden to any single insurance company. Our priority is to advocate for you and secure the best coverage for your specific needs. We’ll work with you to understand any changes in your business, identify potential risks, and ensure all relevant information is disclosed during the renewal process. We see renewal time as an opportunity, not just a formality. By focusing on honesty and working together we can ensure your business is properly protected for the future. View more information our business insurance services here. For a no obligation chat or a quote please call 01245 500433 or send an email.
