Is now the time to review your insurance?

Many businesses and individuals only think about their insurance at renewal, when the focus is often on whether the premium has gone up or down.

However, the insurance market is constantly changing, and many areas of commercial and personal insurance are currently benefiting from what is known as a "soft market". Increased competition between insurers, greater appetite for new business, and additional market capacity make now a good time for policyholders to review their cover and explore whether a reduced premium, improved cover, or greater overall value may be available.

While cost is always important, the current insurance market also presents an opportunity to consider whether your cover is still fit for purpose.

Does your policy still reflect your business’s risks?

Over the past few years, many businesses have changed significantly. For farms and agricultural businesses in particular, rising rebuilding costs, higher machinery and equipment values, changing activities, growth in turnover, and new customer relationships can change the level of risk you face and the amount of cover you need.

At the same time, personal circumstances can change through home improvements, valuable purchases, increased travel, or changes to family arrangements.

If you haven't reviewed your insurance in a while, your cover may no longer reflect your current needs. Examples might include:

• Farm and commercial buildings insured using outdated rebuilding costs

• Stock, plant, machinery, or specialist equipment sums insured that no longer reflect current replacement costs

• New business activities that may not be fully disclosed to insurers

• Growing debtor books that could benefit from credit insurance protection

• Personal possessions or higher-value items that exceed policy limits

• Changes in travel, motor, or home insurance requirements.

When policies are left to auto-renew, sums insured, policy limits, and cover extensions may not reflect changes to the business. If buildings, machinery, equipment, or stock are insured for less than their current rebuild or replacement cost, a claim may not be paid in full, leaving the business to fund part of the loss itself.

Value is about more than price

A softer market may provide an opportunity to explore more competitive terms, but insurance shouldn't become a tick-box exercise.

Policy wordings, exclusions, claims support, and policy limits can vary significantly between insurers. A lower premium may also come with reduced cover or restrictions that only become apparent when a claim is made.

A review should compare the scope of cover, exclusions, limits, claims support, opportunities to strengthen protection or address gaps, and the premium.

Don't overlook credit insurance

A comprehensive insurance review should also consider risks that may sit outside a traditional commercial policy. For businesses that allow customers to buy on credit, one of the most significant risks is payment default or insolvency. If a payment is delayed or not paid at all, consider how that would affect your cash flow.

Trade credit insurance can help protect businesses against losses from customer insolvency or non-payment, while also providing information on customer creditworthiness and support with debt collection.

As the economy, market conditions, and customer circumstances change, now is a good time to review whether your business would benefit from credit insurance.

Speak to your AF Insurance Team

If you have policies due for renewal over the coming months, now may be an ideal time to start reviewing your commercial insurance, considering credit insurance, or assessing your personal insurance arrangements.

Your AF Insurance Team can help to review your existing cover and identify any gaps and opportunities to improve cover or reduce the premium.

To arrange a review, contact your AF Insurance Team: