The Impact of Changes in Circumstances on Your Insurance
Have you ever wondered how changes in your circumstances can affect your insurance coverage? Whether it’s your home, contents, motor vehicle, or business insurance, even seemingly minor changes can have significant implications. These changes may include moving to a new address, making alterations to your property, experiencing a driving license suspension, or adding modifications to your car. Similarly, in the case of business insurance, changes such as introducing new services, engaging contractors, increasing turnover activity, or purchasing additional machinery, systems, or stock can all impact your coverage.
It is crucial for individuals and businesses to remember that modifications in circumstances can directly influence their insurance policies. Scott McCarthy, CEO of Ausure, highlights the importance of understanding this relationship: “Insurance policies are contractual agreements between insurers and the insured. The information provided by the insured forms the foundation of this contract. If the insured fails to inform the insurer about changes in their circumstances, it can have adverse effects on the policy. In the event of a claim, it can provide grounds for the insurer to deny coverage. Clients need to be aware of changes in their circumstances and inform their insurance broker. When a broker conducts an insurance review, they should thoroughly assess all the details related to the individual or business. Unfortunately, this aspect often receives less attention than it deserves due to busy schedules. However, it is an imperative part of insurance if people and businesses want to rely on their policies to respond to their losses. If you are uncertain about receiving proper advice, reach out to an Ausure broker who can provide you with a comprehensive review.“
Ausure Insurance Brokers dedicate themselves to conducting thorough annual reviews, designed to identify any changes in circumstances. However, it is essential to notify them of any modifications that occur between reviews. If you need to make changes or wish to discuss your situation further, you can contact Ausure at 1300 587 225 or find a broker on our website.
Consider this example: Mark owns a small manufacturing company that has grown over the years. He invested in new machinery and expanded operations without informing his insurer about these changes. One day, a fire damages Mark’s manufacturing facility, including the building, machinery, and stock. When he files an insurance claim, the insurer discovers that Mark never updated his policy to reflect the business expansion and new machinery.
As a result, the insurer determines that the policy did not adequately cover the increased business size and machinery. They reduce the claim payout, stating that the coverage limits were based on outdated information.
Because Mark failed to update his business insurance policy, he faces significant financial losses. This example highlights the importance of promptly notifying the insurance company about changes in business circumstances. By keeping the policy up to date, businesses can ensure adequate coverage and avoid difficulties during the claims process.
This example highlights the importance of promptly notifying the insurance company about changes in business circumstances. By keeping the policy up to date, businesses can ensure adequate coverage and avoid difficulties during the claims process.
Ausure’s Claim Manager, Darren Free, emphasizes the effectiveness of Ausure’s review process in preventing oversight of circumstances changes: “Every Ausure adviser is trained to conduct comprehensive insurance reviews. Ausure equips our brokers with various tools and document checklists to ensure that clients are asked the right questions and any necessary policy adjustments are made. While we understand that clients may choose not to take every recommended policy, we strive to ensure that they can rely on the policies they do have.”
Direct insurance customers may find it challenging to receive tailored advice that suits their unique circumstances. It is always recommended to work with an insurance broker.
If you have a current insurance policy, whether it be with Ausure or somewhere else, we invite you to contact us to discuss your insurance questions or concerns. Ausure advisers take the time to understand your individual circumstances and provide you with tailor-made insurance solutions that work for you. Contact Ausure today by calling us on 1300 587 225, completing the form below, or finding a broker here.