When it comes to protecting your business, having the right insurance in place is essential. But one of the most common mistakes business owners make is not providing full details when arranging or renewing their policy. Whether intentional or accidental, missing key information can leave you underinsured – or worse, facing rejected claims when you need coverage the most.
Why Full Disclosure Matters
Insurance is designed to protect you against risks specific to your business, but for insurers to offer the right coverage, they need accurate and complete information about your company. Failing to disclose relevant details – such as the nature of your business activities, staff numbers, turnover, or previous claims – could lead to:
Incorrect Coverage: If an insurer doesn’t have the full picture, you might end up with a policy that doesn’t fully protect your business.
Claim Denials: If key details were omitted, insurers may refuse to pay out on claims, leaving you to cover costs yourself.
Financial Loss: Being underinsured can mean unexpected out-of-pocket expenses that could put your business at risk.
Policy Cancellation: If an insurer later finds out that important information was withheld, your policy could be cancelled, leaving you without protection.
Shopping Around? Make Sure You’re Comparing Like for Like
It’s always a good idea to review your options when renewing your business insurance and as a broker we do that for you in great depth. If you’re taking the task on yourself though, make sure you’re comparing policies on an equal basis. A cheaper premium might seem like a great deal—until you realise it comes with lower cover limits or missing protections.
🔎 Check Key Cover Levels: Ensure essential coverage, such as liability limits, business interruption, and property protection, match your existing policy.
📜 Look Beyond the Price: A lower premium might mean reduced coverage, higher excesses, or exclusions that leave you exposed.
💡 Ask an Expert: If you’re unsure about the differences between policies, you can talk to our expert teams who will help you identify any gaps and ensure you have the right protection.
How to Ensure You’re Properly Covered
Be Honest & Transparent: Provide complete details about your business, including any recent changes or new risks.
Review Your Coverage Regularly: Your business evolves, and so should your insurance. Keep your insurer updated on any changes.
Work with a Specialist: As an experienced insurance broker, we can help you navigate the complexities of coverage and find a policy tailored to your needs.
Final Thoughts
Your business is one of your most valuable assets—don’t leave it vulnerable by failing to disclose important details. Taking the time to fully inform your insurer and carefully compare coverage when shopping around ensures you’re adequately protected against potential risks. If you’re unsure about your current policy or want to explore better options, we’re here to help!