Short term insurers renew policies annually to update risk, items, claims history, replacement values and premium. Insurers and insured have review duties.
It is the duty of insurers to ensure that premiums correspond with information and values, but it is the responsibility of policy holders to ensure that personal information and insurance requirements are accurately represented in policy schedules, says PSG Konsult Short-term support director, Vic Saunders.
After your policy is reviewed, and if necessary, adjusted, insurers send a new or amended policy schedule to clients. The onus is on policyholders to ensure that information contained in the schedule is correct.
Check your organisation’s policy review
When you receive your annual commercial policy schedule review, pay close attention to these aspects:
• New construction: Include entire premises, plant, new constructions.
• Health and safety compliance: Ensure that structures, additions, improvements and processes comply with health, safety, environment and risk management requirements and legislation like the Occupational Health and Safety (OHS) Act and electrical installation certification. Consider risk assessment, hazards handling equipment and procedures, emergency response plans and fire suppression installations, railings, signage, and Major Hazard Installation (MHI) Regulations if the installation is classified as an MHI.
• Geysers: Note number and position of geysers on the premises.
• Cash, valuables and safes: Consider cash in transit amounts and cash kept on premises, smaller and larger amounts of money, and types of safes on the premises.
• Vehicles: Values of vehicles must be adjusted on the same basis as that of personal policy vehicles.
Check your personal policy review
When you receive your annual personal policy schedule review, pay close attention to these aspects:
• Values of vehicles: Contact your broker to assist you in adjusting the values of vehicles according to current market value. Ensure that non-standard extras are included.
• Sum insured of house content: Adjust the sum to cover replacement value of items like televisions, computers, furniture.
• Value of building: Your insurer should be informed of renovations and additions to your house that increase the value of the building.
• Delete old items: If you get rid of items, like watercraft, cancel these on your policy. Also ensure that you add your new cellphone and remove old phones and laptops.
• Security measures: You should comply with security requirements for house content and vehicle cover. Increased values may require more security.
Application of average in the event of a claim is a great annoyance. Make sure your cover is sufficient. Stay in touch with your broker and check on his or her expertise and experience, for example, being relevant to the commercial sector that you operate in. – Source; PSG Konsult Short Term insurance newsletter.
PHOTO; PSG Konsult Short term support director Vic Saunders reminds policy holders of their duties in policy update.