The 10 Main questions we will ask at renewal time

The 10 main questions we will ask at Renewal time

 Most small businesses are not static but grow and change over time. Companies must respond to competitive forces, technological advances and other factors. Thus, few companies remain exactly the same from one year to the next. As your company evolves, your insurance should change as well. To ensure that your policies still meet your company's needs, your insurance will review them annually. The best time to conduct this review is a few weeks before your current policies expire. Any changes you need can be made when your policies are renewed for the subsequent term.

Here are some questions your insurance professional should ask you before your current policies expire:

1. Has the nature of your business changed in the past year? In other words, is your company carrying out the same activities that it was doing a year ago? You may have declared that you provided only Bookkeeping services but found that you were earning income also repairing computers. This new activity is not automatically covered by insurers unless declared and agreed.

2. Has your firm changed ownership? Has its name changed, or has it purchased or formed any new companies? It is essential to ensure that the individuals and/or companies listed on all insurance policies are still accurate so their insurable interest is covered and protected. In the case of liability policies, a claim made against an unlisted company on your policy may be declined.

3. Has your firm acquired any additional property, including Motor Vehicles, within the last year? We accumulate new equipment during the year and do not always remember to factor this into your property insurance which could leave you under-insured. This question is important for two reasons. It will help ensure that the business property you own is insured under your property (or auto physical damage) coverage. Some types of property, such as office furniture, are covered automatically under your property policy as Contents. But other property, such as artwork or watercraft, may require specialised coverage or specific listing. Secondly, an assessment of the property you have acquired will help you determine whether the limits on your property policy are adequate. If the total value of your property has increased during the current policy period, the limit will need to be increased.

4. Has the value of your building or personal property changed? Most small businesses insure their property on a replacement cost basis. If building costs have increased in your area over the last year, you may need to increase the Building limits on your property policy. You need to think of this risk a year ahead so factoring in “escalation costs” such as expected inflation rate should be considered when deciding whether current limits are adequate.

5. Do you expect your turnover to increase or decrease over the next year? Liability insurance policies are usually rated based on turnover. Moreover, liability policies are often subject to adjustment. If you underestimate your income for the coming year, insurers may require an adjustment premium which could be costly.

6. Have your internal systems changed over the last year?  Items such as thepurchase of a new computer system or if you have changed the way you manage data will create newer or increased risk. If you are currently storing large amounts of data, you may be increasingly exposed to cyber liability risks. We will likely suggest you purchase cyber liability insurance or at least have a plan in place to manage the range of attacks that can occur. Also think about your Accounting systems and these staff as any changes may make your company more susceptible to employee theft losses.

7.Is your company operating in any new locations? For example, suppose your company has opened a new office in another state. Any new locations should be listed on your policies as rates vary from State to State along with Government charges such as stamp duty and workers compensation laws.

8. Have you factored in changes to Government regulations that may leave you exposed to Statutory Risk? We are being increasingly regulated for all our activities with the biggest changes being in the Workplace, Health and Safety area and the Fair Work Act along with other Australian Consumer Laws. Many of these risks can be incorporated within a Management Liability cover, which also provides protection to individual Directors and Officers for their personal liability. Have you a Management Liability or Statutory Liability cover in place?

9. Is your business any more or less vulnerable to a business income or interruption loss? If your premises are damaged by a fire or other peril, are you able to still generate a similar income as before? If not, how long will it be before you return to your normal levels of income? We always recommend including Business Interruption cover to our clients to cover the loss in Gross Profit, or the extra cost to keep working. These figures need to be adjusted each year to allow for future growth.

Sometimes it could be a neighbouring business that is affected but as a result they cannot get to yours. Even a Fire and Perils loss to a major customer or supplier can affect your earnings. All make you more susceptible to a large loss in cash flow. Can your business be able to cope with this?

10. Do you expect to increase or reduce your workforce? Workers compensation premiums are based on payroll, as are some liability premiums. While we cannot handle Workers Compensation in all states, your renewal declaration should be based on an accurate projection of your expected payroll for the next period of coverage.

Latest News

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

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