Growth is the best thing that can happen to a company – and the most insidious insurance risk. Not because new dangers appear, but because the old numbers quietly go out of date: the policies protect the company as it was two years ago, not as it is today.
- Growth pulls three numbers out from under the policies: asset value, revenue, and headcount.
- An outdated number means underinsurance or an uncovered gap – both come to light at claim time.
- The solution isn't constant administration, but two routines: replanning at renewal + change notification along the way.
Where growth slips out from under the cover
There are three typical bands. Asset value: new machinery, larger stock, a refurbished site – if the sum insured stays the same, underinsurance can lead to proportional reduction at claim time. Revenue and activity: the premium and scope of liability cover are typically tied to these; unreported expansion puts the validity of the cover at risk. And headcount: for benefits cover and accident cover, half the team can easily be left out if the list isn't kept up to date.
When is renewal enough, and when isn't it?
The rule of thumb: steady, slow growth is handled by a review, if warranted or on request – that's when assets get a new value, liability a new limit, and group cover a new headcount (annual review). But a jump – a new site, a major equipment investment, an acquisition, a new activity, a big contract – can't wait for renewal: that needs immediate change notification and, if needed, an amendment to cover. The line between the two is simple to draw: if the bank, the accountant or the buyer would know about the change, the insurer should know about it too.
The limit question: how much should cover grow?
Raising cover isn't an automatic "double everything" – the right size comes from the risk. On the property side, the yardstick is replacement/rebuilding value; on the liability side, it's partner expectations and realistic claim scenarios; for benefits, it's the budget and the goal. The cover map provides the canvas for this – it shows which number lives in which contract, and where it has drifted from reality. And at growth milestones, it's worth reviewing the whole picture together: portfolio review.
A question tailored to your company? Book a free 20-minute consultation →
