Insurance is an essential component of risk management for individuals and businesses alike, yet many often overlook critical aspects when purchasing or renewing their policies. 

Here are the top ten things people and business owners frequently do not consider, highlighting why guidance from a general insurance broker or adviser is crucial.

1. Underinsurance Risks: Many underestimate the true replacement costs of assets, leaving them vulnerable to significant financial loss. A professional broker or adviser helps ensure accurate valuations, avoiding potential shortfalls in claims payouts. 
2. Policy Exclusions: Policy holders rarely thoroughly review exclusions and limitations, only to discover too late that certain events or scenarios aren’t covered. Brokers or advisers highlight critical gaps and suggest supplementary coverages to fill these voids. 
3. Business Interruption Insurance: Companies often overlook or inadequately cover business interruption losses. Brokers or advisers help businesses understand and accurately calculate potential revenue losses, ensuring comprehensive protection. 
4. Changes in Circumstances: Policyholders seldom update their insurance when significant changes occur—such as property renovations, asset acquisitions, or changes in operations. Regular reviews with brokers or advisers ensure policies remain relevant and sufficient. 
5. Cyber Risk Coverage: As digital dependency grows, so do cyber risks. Many individuals and businesses underestimate their exposure to cyber threats. Insurance brokers or advisers can recommend suitable cyber insurance products to mitigate these modern risks. 
6. Professional Indemnity Misconceptions: Many service providers believe professional indemnity insurance is only necessary for certain professions, overlooking their liability exposure. Brokers or advisers clarify potential professional risks and liabilities specific to each industry, ensuring proper coverage. 
7. Claims Process Misunderstandings: People frequently misunderstand or underestimate the complexity of claims procedures. Brokers or advisers educate policyholders on efficient claims management, facilitating smoother and quicker settlements. 
8. Liability Limits: Insufficient liability coverage can leave businesses exposed to substantial legal costs and compensation claims. Brokers or advisers assess realistic liability risks and recommend appropriate coverage levels tailored to business activities and size. 
9. Employee and Management Liability: Business owners commonly neglect insurance for management decisions or employment practices liabilities. Brokers or advisers help identify these risks and recommend suitable management liability insurance, protecting businesses from internal and external legal threats. 
10. Importance of Regular Reviews: Insurance is not a ‘set-and-forget’ arrangement, yet many treat it as such. A general insurance broker or adviser conducts regular reviews, ensuring that coverage adapts to changing conditions, regulatory requirements, and evolving risks. 

The role of a general insurance broker or adviser is indispensable, providing expertise to navigate complex insurance landscapes effectively. By identifying overlooked areas, ensuring accurate valuations, and aligning coverages with real-world risks, a broker or adviser ensures comprehensive, responsive, and cost-effective insurance protection for both individuals and businesses.

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)