When to Contact Your Insurance Broker

It’s a common assumption that, as a business owner, you only need to contact your insurance broker when you need to renew your policy or make a claim. The reality, however, is there are many things in your operations that can change that your insurance broker needs to know about. Regularly keeping in touch with your broker can help ensure you’re not left with any gaps in cover and are getting the most value from your broker’s service.

Here are some of the instances in which you will need to contact your broker to ensure your insurance is up to date and correctly reflects your business’s current situation.

You Experience a Complaint that May Lead to a Claim

This is one of the most important scenarios in which you should promptly contact your broker. If your business is involved in providing a service or advice, and a client hints that your advice caused them financial loss or damage, it could be the first sign of a Professional Indemnity Insurance (PI) claim. Even if you feel their dissatisfaction is minor, or that their allegation has no basis, a conversation with your broker can help ensure you’re being honest and transparent and will have minimal issues if you do need to make a claim.

You Expand your Workforce

Expanding your workforce is an exciting time for your business, but it also means there’s some homework on your part. Whether you’re engaging someone as a sub-contractor, or employing a permanent employee, you should contact your insurance broker to discuss the changes to your risk profile and the steps you might need to take.

It’s easy to assume sub-contractor actions are automatically covered under your insurances, but this may not be the case. Without the appropriate cover in place, if a sub-contractor makes a mistake in the work or advice they undertake on your behalf, or are held responsible for bodily injury to someone, your business could be left with the financial burden of a lawsuit. Your broker will advise whether your policy covers the actions of your sub-contractor, and the sub-contractor’s own liability, or whether they need to take out their own insurance.

Your Services have Changed

If there has been a change to the products/ services your business offers, you should tell your insurance broker to ensure it is covered under your policy. This also includes hiring a new staff member who is qualified in a different area, and provides a service in line with their qualification. Your broker will determine whether your policy needs to be changed mid-term, or whether it can wait until your next renewal. Remember, if a service is not listed on your schedule, it may not be covered under your PI.

Your Revenue has Changed Substantially

When you take out an insurance policy for the first time, you’re usually asked to nominate your annual revenue, and possibly asked to report this amount at each renewal. You will need to notify your broker if there is a substantial change to this amount during the year. For example, if you secure a large contract or client.

As you can see, there are many situations in which your broker may need to be notified of changes to your business. The factors listed above aren’t exhaustive, and there may be other instances in which you may need to update your insurance. If anything else does change in your business, and you’re unsure about whether your insurance needs updating, a quick call to your broker can help clear any confusion. About the Author Aon is a leader in risk and insurance broking, and arranges a range of insurance solutions for occupational therapists. As the preferred insurance broker to OTA, Aon is proud to provide cover for OTA members and its client numbers continue to grow. If you’d like to find out more about Aon, or to get a quote, please visit aon.com.au/ota, call 1800 805 191 or email au.ota@aon.com

© 2020 Aon Risk Services Australia Limited ABN 17 000 434 720 AFSL no. 241141 (Aon) This information is intended to provide general insurance-related information only. It is not intended to be comprehensive, nor does it, or should it (under any circumstances), be construed as constituting legal advice. You should seek independent legal or other professional advice before acting or relying on any of the contents of this information. Aon will not be responsible for any loss, damage, cost, or expense you, or anyone else, incurs in reliance on, or use of, any information contained in this article.