How Often Should I Review My Public Liability Insurance Coverage?

Importance of regular reviews

Regular reviews of insurance coverage are important to manage business risks. As your business expands, downsizes or changes services, the nature and scope of your risks can change too.

The changes could introduce new liabilities or reduce certain risks, which means your coverage needs to be updated to match. Regularly assessing your policy helps identify any gaps, ensuring the cover is tailored for your business and your activities remain protected against potential claims.

Recommended review frequency

Regular reviews of your public liability insurance coverage are key to protect your business from the potentially severe financial implications defend claims and the payment of any damages awarded in court. The answer to how often you should review your public liability insurance coverage is twofold.

Annual reviews 

As a business you should review your public liability coverage at least once a year. Aligning this review with the yearly planning cycle or the financial year end means that the coverage stays relevant and appropriate.

Event-triggered reviews 

It’s also important to assess and update insurance after a significant business change. From evolving business activities and scaling operations to entering new markets or making substantial purchases or sales. When you review after such events, you ensure that the coverage adapts to any new risks, keeping you protected.

What to consider during a review

Certain business changes should trigger a review of public liability insurance coverage. Key aspects include the below.

1: New products or services 

Introducing new offerings can also introduce new risks. Updated coverage could be needed.

2: Changes in revenue 

Significant increases or decreases in revenue can impact the level of coverage required.

3: Business location 

Moving to new premises or expanding to additional locations may introduce new risks or regulatory requirements.

Changes in legislation or industry standards can also affect your risk exposure and insurance requirements. Staying informed about these changes ensures compliance and adequate protection.

You should also consider your recent claims history. Frequent or severe claims may mean that the current coverage is not working for you. Adjustments could be needed to better meet your business needs.

Communicating with your insurer or broker

Immediately informing your insurer or broker of big changes in your business is crucial. These changes can affect your coverage needs and good communication ensures that your insurance remains relevant.

It’s wise to build and maintain a good relationship with your insurance broker. A strong relationship means tailored advice and optimal adjustments to your public liability insurance coverage.

Brokers and agents who understand your business because of this relationship can better anticipate your needs and recommend appropriate updates, explaining the scope and terms of the cover provided. You’ll get peace of mind and tailored protection against potential claims. It’s important to check with your insurance broker if you don’t fully understand the implications of policy conditions, exclusions or requirements.

Public liability insurance from Towergate

Regularly reviewing public liability insurance means it keeps pace with your business environment. Staying updated and informed ensures your coverage adapts to changes, providing peace of mind and financial security.

Get a public liability insurance quote

If you’re looking to arrange cover, don’t miss our public liability insurance product. Get a quote today, either online or by phone on 0330 818 9929.

About the author

Alison Wild BCom (Hons), FMAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has 20 years' experience as a residential landlord.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.