What is a Mid Term Review of your Commercial Insurance Policies?
A mid-term review in commercial insurance refers to an assessment or evaluation conducted by an insurance broker during the policy period, typically before the policy’s renewal date.
The purpose of a mid-term review is to reassess the risks associated with the insured entity, such as a person, property, or business, and to make any necessary adjustments to the policy. These adjustments can include changes in coverage, premiums, terms, or conditions based on the updated risk profile.
Here are some key points about a mid-term review:
1. Risk Assessment – The insurance broker reassesses the risk based on any changes in circumstances. For example, if a business expands its operations, moves to a new location, or experiences a significant change in revenue, the insurance policy may need to be adjusted to reflect these changes.
2. Premium Adjustments – If the risk level has increased or decreased since the policy was issued, the insurance broker can assess this and advise insurers who may adjust the premium accordingly. This ensures that the policyholder is paying an appropriate amount for the coverage based on the current risk.
3. Coverage Changes – Depending on the review, the broker might suggest or require changes in the coverage. This could mean adding or removing certain coverages, adjusting limits, or changing deductibles.
4. Compliance and Updates – The review might also check for compliance with any policy requirements or updates in regulations that could impact the insurance coverage.
5. Policyholder Review – It provides an opportunity for the policyholder to discuss their current insurance needs, update their broker on any changes, and ensure they have the appropriate coverage in place.
A mid-term review is beneficial for the insurance broker, insurer and the policyholder, as it ensures that the insurance coverage remains accurate and sufficient throughout the policy period. A further benefit of a review ahead of the renewal date is it allows a business to assess the service they are currently receiving as well as go benchmark costs in order to secure best value at renewal stage.