Your Business is expanding rapidly, new employees being hired, and your office is starting to run out of space. You decide to relocate to a bigger office two blocks down the road. During all of the chaos from the moving, it becomes very easy to forget to notify the insurance company of the move, so they can update your office’s policy. Although this may seem like a small or insignificant mistake, it could prove to be more serious.
When a policy holder is aware of a major change but does not inform the insurer of the change, this is known as a material change in the risk. Insurance Companies need to know about material changes as it changes the risk and may result in an additional premium or return premium. A material change is a condition common to all insurance policies. If this condition is broken, the insurer has the right to void the insurance policy, meaning that there will be no coverage for a normally insurable loss.
This is why it is vital to promptly notify your insurer or insurance broker of any changes that are going to occur to the office such as, moving office spaces, renovations to the current office space, the purchase of additional office equipment, etc. as soon as possible.
Ensuring your insurer or insurance broker is kept in the loop with all the changes taking place at your organization will keep your policy up to date, and your organization safe from unexpected and accidental losses. Keeping your insurance policy up to date provides you with peace of mind which you payed for.