Reviewing and renewing business insurance

Business insurance policies typically run for 12 months. When your renewal date approaches, you have a legal and commercial duty to review your cover, update your insurer on any changes, and confirm the right level of protection for the year ahead.

This guide walks you through the renewal process step by step, starting 8 to 12 weeks before your policy expires.

When to start the renewal process

Your insurer will usually send renewal terms 3 to 4 weeks before expiry. However, you should start your own review much earlier to leave time to compare the market and gather updated information.

• 12 weeks before expiry: Set a calendar reminder and begin reviewing your current cover
• 8 weeks before expiry: Gather updated business information and request quotes from alternative insurers or brokers
• 4 weeks before expiry: Compare renewal terms, finalise your decision, and confirm the new or renewed policy

Never let a policy lapse. Even one day without employers' liability insurance is a criminal offence carrying a fine of up to £2,500 per day. For claims-made policies such as professional indemnity, a gap in cover can leave you permanently uninsured for work done during the lapsed period.

Your disclosure obligations at renewal

Under the Insurance Act 2015, you must make a fair presentation of risk every time you take out or renew a policy. This is not optional — it is a legal duty that applies at every renewal, not just when you first buy cover.

A fair presentation means you must:

• Disclose every material circumstance you know or ought to know about
• Give the insurer enough information to prompt them to ask the right questions
• Make the disclosure in a reasonably clear and accessible way

What counts as a material change?

You must tell your insurer about any changes since your last renewal, including:

• New business activities — services, products, or markets you have added
• New or changed premises — additional sites, home working, or shared workspaces
• Staff changes — more employees, subcontractors, or volunteers
• Incidents and claims — any claims made during the policy year, near misses, or complaints
• Regulatory actions — enforcement notices, improvement notices, or investigations
• Convictions — criminal convictions of directors, partners, or the business itself
• Turnover changes — significant increases or decreases in revenue
• New equipment or stock — assets that affect the value of your contents cover

What happens if you fail to disclose?

If you do not make a fair presentation and the insurer later discovers the omission, they can:

• Reduce the claim payout proportionally
• Void the policy entirely if the non-disclosure was deliberate or reckless
• Treat the policy as if different terms applied — for example, adding exclusions retrospectively

The consequences depend on whether the non-disclosure was innocent, careless, or deliberate. Deliberate non-disclosure gives the insurer the strongest remedies.

Reviewing your current cover

Before you accept renewal terms or request new quotes, work through these questions to check whether your existing cover still fits your business:

• Has your turnover changed? Public liability and professional indemnity premiums are often based on revenue. Under-declaring turnover can reduce a payout.
• Have you hired more staff? Employers' liability premiums reflect headcount and payroll. Update these figures accurately.
• Have you started new activities? Adding services — such as design work alongside construction, or food delivery alongside dine-in — may need additional cover types or higher limits.
• Have you acquired new equipment or stock? Contents insurance should reflect the current replacement cost of your assets.
• Do you now hold personal data? If you have started collecting customer data, processing payments online, or storing sensitive records, consider cyber insurance.
• Have you started exporting? Goods in transit insurance and international liability cover may be needed.
• Have your contracts changed? New clients may require higher cover limits or additional policy types.

Avoiding gaps in cover

A gap in insurance cover — even for a single day — can have serious consequences:

• Employers' liability: Operating without EL insurance is a criminal offence. The fine is up to £2,500 for every day you are uninsured.
• Claims-made policies (PI, cyber): If you switch insurers, check the retroactive date on the new policy. This is the earliest date from which claims will be covered. If the new policy sets a later retroactive date than the old one, you will have no cover for work done in the gap period — permanently.
• Motor insurance: Driving without valid business motor insurance is illegal and can lead to prosecution, points on your licence, and vehicle seizure.

Keeping records

Good record keeping protects you if a claim arises months or years after an event:

• Employers' liability certificates: Retain for at least 40 years. Former employees can bring injury claims long after they stop working for you.
• All other policy documents: Keep copies of every expired policy, including the schedule, wording, and any endorsements.
• Renewal correspondence: Document what you disclosed to the insurer and when. Keep a copy of the proposal form or renewal questionnaire you completed.
• Claims correspondence: Retain all records relating to claims, whether settled, rejected, or withdrawn.

What to do next

Once your renewal is confirmed:

• Set a calendar reminder for 12 weeks before your next renewal date
• File your new policy documents where you can find them quickly if you need to make a claim
• Update your employers' liability certificate display
• Brief any staff who handle insurance queries or claims on the new policy details
• If your business has changed significantly, consider a mid-term review with your broker rather than waiting for the next renewal