Liability insurance isn't a tin can, it's a garden: once a year, you need to look and see whether the business has grown out of it. That's what the annual review routine is for – a good habit that keeps your cover current in exchange for 20 minutes a year, and prevents most of the “we only found out at claim time” situations. The fourth quarter is peak season for company policy anniversaries – this article adds the routine to your calendar.
- The anniversary is your contract's yearly turning point: indexation notices, premium changes, the cancellation window are typically tied to it.
- Four questions for the routine: has your activity changed, has revenue grown, are the limits still right, is the premium still competitive?
- You don't need to switch every year – but every year, it's worth knowing whether staying is still the right call.
What happens at the anniversary on its own?
Three things typically happen even without you doing anything: the insurer may send an indexation notice (a premium or limit correction under the terms); the contract renews for the next year; and if you want to switch, the cancellation rules (typically tied to a deadline around the anniversary) open up here. Anyone who files the letters away unread loses their decision points – the anniversary post is where the routine starts.
The four questions
1. Has your activity changed? A new service, a different mix, an employee, work abroad – if any of the in-year reports (article) were missed, this is the last regular chance to catch up. 2. Has revenue, your client base or your project size grown? If so, the limit question reopens: a limit that was right two years ago may now be too little for your current book of contracts (the limit article). 3. Are the structural elements still right? Deductible against your current reserves, extensions against how you actually operate now, certificates against your current clients (checklist). 4. Is the premium still competitive? You don't need a market comparison every year – but every two or three years, or after a substantial premium increase, it's worth it: the table shows whether you're still well placed (comparison).
When is a nod enough, and when do you need a full round?
A nod is enough if the answer to all four questions is “nothing's changed, it's fine” – in that case, the anniversary is just an acknowledgment. It's worth running a market comparison if: a substantial premium increase arrived with no explanation; the business has outgrown its structure; new requirements have appeared (a tender, work abroad, a chamber rule); or it's been two or three years since your last comparison. If you're weighing a switch, the continuity rules apply – the retroactive date, a seamless join (the switching article).
Put it in your calendar
The routine works if it's automatic: block out 20 minutes in the month before your anniversary, and use the annual review checklist to run it. If you ask, I help with this round – the calendar is yours, the comparison is mine: free consultation.
The fourth-quarter crunch – and how to avoid it
For a large share of business policies, the anniversary falls at the turn of the year, so renewal work typically piles up in the fourth quarter: indexation letters go out, quote requests pile up, and turnaround times stretch. Anyone who starts their annual review at that point ends up waiting in line; anyone who starts six to eight weeks before their anniversary gets through it comfortably – with a comparison, a decision, and a seamless switch if one is warranted. The practical advice: set your calendar reminder not for the anniversary itself, but two months ahead of it. Maintaining your cover is exactly like servicing your car: the best time to go isn't when everyone else does – it's ahead of time.
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