Guide
The drama-free guide to policy renewals
For business owners approaching renewal who want to make sure they’re still properly covered.
Why coverage matters
Here’s why renewal matters. Most founders just hit “renew” and pay the invoice. Big mistake.
Your business has changed in the last 12 months. Your risks have changed. Your coverage should change too.
Renewal is your annual checkpoint to make sure you’re still properly protectedand not overpaying for coverage you don’t need.
What happens at renewal
30-60 days before your policy expires:
For most small business founders:
- Your broker sends a renewal notice with updated premiums
- You review coverage, pricing, and any changes
- You decide: renew as-is, adjust coverage, or shop around
If you do nothing:
- Most policies auto-renew at the new premium
- You’re locked in for another 12 months
- Any coverage gaps continue for another year
The 5-question renewal checklist
Question 1
Has your business changed in the last 12 months?
Check if any of these happened:
- Hired employees
- Increased revenue significantly
- Started new services or products
- Moved to a new office or added locations
- Signed contracts with new (bigger) clients
- Changed business structure (sole trader → company)
- Added equipment or stock worth $10k+
Question 2
Are your coverage limits still appropriate?
Review:
- Public Liability: Still $10M or $20M? Do new contracts require more?
- Professional Indemnity: Still adequate for your project sizes and client types?
- Cyber Protection: Still enough for the amount of data you handle?
- Business Insurance: Does it cover your current equipment and stock value?
Common gaps at renewal:
- You’ve doubled revenue but coverage is the same
- You’ve added services that aren’t covered
- Your equipment value has grown but your policy limit hasn’t
Question 3
Is your premium increase justified?
Premium increases happen for three reasons:
- Market conditions — Industry-wide rate increases (e.g., cyber insurance went up 20-40% in 2023)
- Your claims history — You made claims, so you’re higher risk
- Your business growth — Higher revenue, more staff, bigger contracts = higher premiums
Justified increases: 5-15% with no claims, 20-50% if you’ve made claims, market-driven increases for specific policy types
Unjustified increases: 30%+ with no claims and no business change
Question 4
Are there new exclusions or changes to terms?
- Insurers sometimes change policy terms at renewal:
- Adding exclusions
- Increasing excess amounts
- Removing automatic coverage extensions
- Changing claims notification requirements
You need to spot these changes. Don’t just assume “same policy, higher price.”
- You’ve doubled revenue but coverage is the same
- You’ve added services that aren’t covered
- Your equipment value has grown but your policy limit hasn’t
Question 5
Should you shop around?
Consider getting competing quotes if:
- Your premium increased more than 20% with no claims
- Your broker hasn’t contacted you in 12 months (they only show up at renewal)
- Your business has changed significantly and your broker hasn’t suggested coverage updates
- You’ve had a terrible claims experience
Don’t bother shopping around if:
- Your premium increase is reasonable (5-15%)
- Your broker is proactive and helpful
- You’ve made multiple claims (you’ll struggle to get better pricing elsewhere)
Common coverage mistakes
Mistake #1: Auto-renewing without reviewing
Cost: Overpaying for coverage you don’t need, or under-covered for risks you do have.
Mistake #2: Not updating your broker about business changes
Cost: Coverage gaps. If you didn’t tell them you hired 5 people, your Workers Comp isn’t active.
Mistake #3: Shopping around at the last minute (2 days before renewal)
Cost: Rushed decisions, coverage gaps if new broker can’t arrange cover in time.
Mistake #4: Focusing only on price, not coverage
Cost: Switching to a cheaper policy with worse coverage, higher excess, or more exclusions.
Mistake #5: Not asking why your premium increased
Cost: Paying inflated premiums when a competitor would offer 20% less.