As a business grows, so do its risks. Whether expanding into new markets, adopting innovative technologies, or increasing staff, each change brings new potential vulnerabilities. Regular insurance reviews are essential to ensure your business stays protected and adequately covered as it evolves. Many companies fail to keep up with necessary adjustments, only to find out when it’s too late that their insurance no longer meets their needs.
Here’s why scheduling regular insurance reviews should be a cornerstone of any successful business strategy.
1. Adapting to Business Growth and Change
Your insurance policy should reflect the current state of your business, not where it was a year or two ago. Expansion, new revenue streams, or additional employees can introduce new risks that your initial policy may not account for. A regular insurance review ensures that any changes in the scale or scope of your operations are considered, allowing for policy adjustments that align with your business’s current needs.
2. Managing Evolving Risks
Risk landscapes shift constantly. What was once a minor consideration might now be a major threat. Take cybersecurity as an example: with a 76% increase in cyberattacks in South Africa in 2023, according to SEACOM, it’s clear that cybersecurity insurance has become a necessity for many businesses. If your business doesn’t periodically review its coverage, it may miss out on new insurance products that address emerging risks, leaving you vulnerable.
3. Ensuring Optimal Coverage
As businesses grow, it’s not uncommon to overpay for insurance policies or hold unnecessary coverage that no longer applies. On the flip side, some businesses might inadvertently cut costs by reducing coverage or missing key aspects, which could leave them exposed to substantial risks.
Regular reviews help identify gaps in coverage or excesses that could be optimised. By sitting down with an insurance broker, businesses can make strategic adjustments, ensuring that every rand spent on insurance delivers value.
4. Improved Risk Management
When you conduct regular insurance reviews, you also gain the opportunity to implement stronger risk management strategies. During these reviews, insurance brokers can help businesses pinpoint areas of exposure that may be mitigated before claims arise. A proactive approach can lower risk and premiums through improved safety protocols, disaster recovery planning, or employee training.
5. Staying Compliant
Changes in the law can impact your business insurance needs. As regulations evolve, businesses must adapt their coverage to stay compliant. From labour laws affecting employee insurance to environmental regulations that may introduce new liabilities, a regular insurance review helps ensure your business stays on the right side of the law, avoiding costly fines and penalties.
How Often Should Businesses Review Their Insurance?
For most businesses, an annual insurance review is a good starting point. However, significant changes—like mergers, acquisitions, product launches, or geographic expansion—warrant immediate reassessment. Additionally, you should engage with your insurance broker whenever new risks emerge in your industry or if there are changes in the broader economic environment.
Partnering with the Right Insurance Broker
Working with a knowledgeable insurance broker is critical to ensuring that your business’s insurance keeps pace with its evolution. A broker can offer expert advice on industry-specific risks, provide access to a wide range of products, and tailor policies that suit your unique business needs.
At RBS Insurance Solutions, we understand the complexities of business insurance and are committed to helping our clients navigate these challenges. regular insurance reviews allow us to deliver ongoing value and protect our clients at every stage of their business journey.
About RBS
Risk Benefit Solutions, better known as RBS, originated as an entrepreneurial-focused services business in 1998 and today is one of the largest fully-fledged black-owned insurance brokers in South Africa and a Level One BBBEE contributor. Celebrating 25 years in business this year, our growth has contributed to offering clients a unique approach to risk management by positioning our skilled resources as an extension of our client’s risk management team. Our company covers various services, including Insurance Broking, Risk Management, Commercial and Corporate Risk Advisors, and Corporate Vehicle Hire Services. With its head office in Cape Town, RBS has offices in Gauteng, the Eastern Cape and globally, represented through its board membership with WING (Worldwide Insurance Network Group).