New Financial Year, New Risks - Is Your Coverage Ready For What’s Next?
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There's something about the final stretch of the financial year that gets business owners thinking bigger. Maybe you've had a strong twelve months, and you're ready to hire your first, or next employee. Maybe you've been eyeing off a new van, a better workshop, or that piece of equipment that'll finally let you take on bigger jobs. Maybe you're planning to launch into a new market, start importing stock, or open a second location.
Whatever's on your whiteboard for the year ahead - it's worth pausing to ask one question most business owners forget: does my insurance still match the business I'm becoming?
Your coverage was built for a moment in time
Something we see all the time with new clients is where a business owner took out their insurance when they're just getting started - maybe it's just them, a ute, and a laptop. Fast forward two or three years, and they've got staff, a fitout, $80,000 in equipment, and customers across three states. But their insurance? It was never updated and was still set up for the ute-and-laptop version of the business. With a larger business comes bigger risks. Something went wrong, and they found out they weren’t covered.
Insurance is one of those things that sits in the background - until you need it. And that's exactly when you discover the gaps.
Every year when you renew your BICS insurance, we work with you to understand how your business has and will change to manage the risks to your business. However, you don’t need to wait for your next renewal to check for gaps if you have big plans underway.
The changes that change your risks
Not every business decision affects your insurance. Here are some of the common triggers we see that should prompt a conversation about your coverage:
Hiring or letting go of staff
Taking on employees can change your obligations. Workers' compensation requirements, employer liability, even the value of your business interruption coverage - can all shift when your team grows. And if you're reducing staff, you might be paying for coverage you no longer need.
Buying or upgrading equipment, vehicles, or tools
That new excavator, delivery van, or clinic fit-out increases the value of assets you need to protect. If your policy still reflects what you owned two years ago, you could be underinsured. Does your insurance cover what it would cost to replace those items today?
Moving premises or fitting out a new space
A new lease, a warehouse, a shopfront renovation - these all can impact your property coverage, your public liability exposure, and potentially your business interruption calculations. Even a home-based business moving into a commercial space introduces new risks.
Launching a new product or service
Expanding what you offer can change your professional indemnity needs, your product liability exposure, and your general risk profile. If you're a tradie who starts offering design consultancy, or a retailer who goes from online to a physical store; the risks may not be the same as before.
Starting to import or export goods
The moment stock crosses a border, you're dealing with transit risks, customs obligations, and potential liability in markets you haven't operated in before. If you have outsourced to an overseas supplier for your products; you may have additional risks that need to be considered.
Taking on subcontractors
Using subcontractors introduces questions about who's covered, who's liable, and whether your existing policies extend to work done on your behalf. It's an area full of assumptions - and assumptions are where gaps live.
Increasing your revenue or stock levels
Growth is great, but higher turnover and larger inventory often means higher exposure. If your business has had a strong year, your coverage limits might not reflect the business you're running today.
The cost of getting it wrong
Around 70 - 80% of Australian small businesses are underinsured. That means if something goes wrong - a fire, a theft, an injury, a claim against your work - their payout won't cover the actual cost. The gap between what they're insured for and what they've actually lost can be devastating.
And the frustrating part? In most cases, it would have taken one conversation to sort it out. A fifteen-minute chat about what's changed in the business, a quick review of the numbers, and the coverage gets updated. That's it.
EOFY is the natural time to do this
You're already thinking about the year ahead. You're talking to your accountant about tax planning, reviewing your P&L, setting targets for the next twelve months. Adding a quick insurance check-in to that process just makes sense.
Here's what a coverage review with us looks like:
We'll ask you a few straightforward questions about what's changed - or what's about to change - in your business. We'll look at your current coverage against where your business actually is today, and flag anything that might need adjusting.
If everything's in good shape, we'll tell you that. If there are gaps, we'll explain them in plain English and walk you through your options. Either way, you'll know where you stand - and that's peace of mind worth having.
One conversation. That's all it takes.
Your business is evolving. Your coverage should evolve with it.
If you've made changes this year - or you're planning changes for the year ahead - reach out to the BICS team for a no-obligation coverage
review. Give us a call, send us an email, or drop us a message. We're here to make sure the business you're
building is properly protected for whatever comes next.
Important notice
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
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