Are you mitigating all the risks you should be?

Commercial insurance is an important part of protecting your business, but having policies in place doesn’t automatically mean every risk is adequately managed.

An effective insurance review should look beyond premiums and policy limits. It should also consider the procedures you have in place to reduce exposure in the first place. Small gaps in due diligence can potentially lead to significant financial consequences and sometimes you won’t discover the gap until something goes wrong.

Are your contractors properly insured?

Contractors and subcontractors can introduce risks into your business, making it important to understand the insurance they hold.

Are you checking that their cover is appropriate for the work they undertake, including the type of insurance and level of indemnity? If an incident occurs and a contractor is inadequately insured, consider where the resulting financial or liability exposure could fall.

Simply requesting an insurance certificate isn’t always enough.

Is the minimum level of cover really enough?

Minimum contractual insurance requirements shouldn’t automatically be treated as adequate protection.

Consider the potential scale of a loss. If a contractor carries £1 million of cover but an incident could result in a significantly larger claim, who could be responsible for the difference?

As your business grows, contracts increase in value or the nature of your work changes, insurance limits should be reviewed to ensure they remain appropriate.

Don’t let familiarity replace due diligence

Long-standing relationships can sometimes result in checks becoming less rigorous. A contractor may have worked with you for ten years without an issue, but that doesn’t mean their insurance, accreditations or circumstances haven’t changed.

Build regular reviews into your procedures. This could include annual insurance checks, recording policy renewal dates, requesting updated certificates and periodically reviewing qualifications or accreditations.

Review your contractor and supplier procedures

What happens when a new contractor or supplier is appointed?

A consistent onboarding process can help ensure insurance, qualifications, accreditations and other relevant documentation are verified before work begins. Responsibility for completing and recording these checks should also be clearly defined.

Supplier due diligence is equally important. Consider their ability to meet their obligations and whether reliance on a particular supplier could expose your business to financial loss or business interruption.

Don’t overlook your fleet

Fleet management is another area where ongoing checks matter. Driving licences should be checked regularly, with clear procedures for employees to report points, convictions or changes in licence status.

Businesses should also maintain an up-to-date record of who is authorised to drive company vehicles rather than relying on checks completed when an employee first joined.

Look beyond the policy

Effective risk mitigation isn’t simply about buying the right insurance.

Regular checks, documented procedures and appropriate levels of cover can help reduce both the likelihood and financial impact of something going wrong.

Your next commercial insurance review is an opportunity to look beyond the policies you hold and ask a wider question: are you managing all the risks surrounding your business?