New year coverage review: Starting 2026 with clarity

The transition into a new calendar year represents a checkpoint for many Australian businesses. Policy renewal dates, financial year planning, and operational reviews often align with January, creating a natural window for examining insurance arrangements.

This period also coincides with the completion of the previous year's trading patterns and the beginning of new business cycles. From updated asset values to changed operational structures, various factors may influence how existing coverage applies to current circumstances.

Commercial insurance policies operate within defined terms and conditions. Understanding these parameters at the start of the year forms part of standard risk management practice across Australian business operations.

Year-start insurance review factors

Several elements commonly prompt businesses to examine their coverage arrangements:

• Annual policy renewal cycles coinciding with calendar or financial year dates
• Completed trading year data providing actual turnover and revenue figures
• Asset valuations reflecting current replacement costs and inventory levels
• Operational changes implemented during the previous year
• Forward planning for anticipated business activities
• Premium structures and payment arrangements for the coming period

Coverage elements subject to change

Insurance terms typically contain various parameters that may require adjustment based on business circumstances:

• Sum insured amounts – values declared for buildings, contents, and stock
• Revenue declarations – turnover figures used in premium calculations
• Business descriptions – scope of activities covered under the policy
• Location schedules – premises addresses and operational sites
• Employee numbers – staff counts affecting workers compensation and other covers
• Asset registers – equipment and machinery listed for protection

Business changes influencing coverage requirements

Operational modifications during the previous year may affect existing policy terms:

• Premises changes – new locations, relocated operations, or additional sites may require schedule updates and coverage extensions
• Workforce adjustments – increased staff numbers, contractor arrangements, or changed employment structures can influence various policy types
• Product or service expansions – additional offerings, new business lines, or altered operational scope may fall outside existing policy descriptions

The specific impact depends on the nature of the change and the terms of the existing policy. Businesses often consult with brokers to understand whether modifications require formal notification or policy adjustment.

Policy review process elements

Many businesses follow certain steps when examining their insurance arrangements:

• Comparing declared values against current asset registers and inventory levels
• Reviewing business descriptions in policy schedules for accuracy
• Checking coverage limits relative to current operational scale
• Confirming excess levels and claim notification procedures
• Verifying contact details for brokers and underwriters
• Understanding renewal timelines and documentation requirements

These activities support informed decision-making about coverage adequacy and policy structure.

Documentation and record-keeping

Year-start reviews often involve gathering information that supports accurate policy terms:

• Updated asset valuations and depreciation schedules
• Annual financial statements and revenue figures
• Current employee counts and payroll information
• Premises lease agreements or ownership documentation
• Business registration details and ABN verification

This information assists brokers and underwriters in confirming policy terms align with actual business circumstances. Always refer to the relevant Product Disclosure Statement (PDS) for details on coverage scope and policy conditions.

Planning your insurance arrangements for 2026? Contact us to speak with one of our expert brokers.