When did you last review the insurance around your business?

Revenue, employees, equipment, premises, customer exposure, professional services, cyber exposure and the size of contracts can all change as a business grows.

A policy arranged for a smaller version of the business may warrant review once the business has materially changed. That does not mean the existing cover is inadequate. It means the circumstances given to an insurance professional may no longer describe the business as it now operates.

In some businesses the founder drives most sales. In others, one technical director holds critical knowledge, one salesperson owns important relationships or one operations leader keeps delivery moving.

The issue is broader than insurance. The absence of that person can affect revenue, replacement costs, client relationships, debt commitments and continuity. An appropriately licensed specialist can explain any insurance options that may form part of that wider discussion.

Death or permanent incapacity can create difficult questions about ownership transition, funding and the operation of shareholder or buy/sell agreements.

These situations can involve legal, tax, insurance and personal financial advice at the same time. Wakefield Pacific can contribute on the accounting and tax side and work alongside the professionals responsible for the other advice.

Home debt, business loans, property finance and personal guarantees can increase while the original insurance arrangements remain unchanged.

If an owner could no longer work, what commitments would continue? That is a useful question to take into a review. It is not a recommendation about whether insurance is required or what amount is appropriate.

Marriage, children, property, income, debt and dependants can all alter the circumstances around a business owner.

Life cover, total and permanent disability insurance, income protection and trauma cover are different personal protection categories. Whether any category is suitable, and on what terms or amount, is a personal-advice question for an appropriately licensed financial adviser.

Cyber incidents, privacy breaches, ransomware and operational interruption have become more visible business risks.

Business.gov.au identifies cyber insurance as one form of business cover. Whether it is relevant, and what a policy responds to, depends on the business and the policy terms explained by the insurance professional.

• Business revenue has grown materially.
• The team has expanded.
• The business has moved into new premises.
• Large equipment or assets have been acquired.
• New debt has been taken on.
• A shareholder or director has joined.
• The business has made an acquisition.
• Family circumstances have changed.
• Several years have passed since the last review.

None of these events automatically requires more cover. Each can make a current conversation worthwhile.

Wakefield Pacific can help explain structure, business numbers, ownership, debt and the accounting and tax context.

The appropriately licensed insurance professional is responsible for insurance advice, recommendations, products, cover levels, policy terms and placement. A lawyer may also be required where shareholder, buy/sell, estate-planning or ownership arrangements are involved.

See how our insurance referral process works →

Insurance is one of those areas that can sit untouched for years while everything around it changes.

A review does not automatically mean changing policies or buying more cover. It means checking whether the existing arrangements still reflect the business and personal circumstances that exist today.

Wakefield Pacific does not provide insurance product advice. Where a review is appropriate, we can help provide the business and financial context and introduce you to an appropriately licensed insurance professional whose expertise is relevant to the enquiry.