Turnover is important!

Turnover matters when it comes to business. Put simply, it's the gross amount of money your business brings in over a given period, before expenses and tax are deducted.

A rising turnover usually indicates that your business is thriving but this will also affect your professional indemnity insurance.

Be aware of Maximum Allowable Limits

You don't need to tell us every time your turnover increases. You do, however, if it exceeds the maximum allowable turnover for your policy. Reaching that limit doesn't mean you're uninsurable, it just means your cover needs adjusting.

The amount your turnover can increase before your reach your maximum limit depends on your insurer and your policy. You can find out by checking your policy documents which should specify your limit. Your broker will/should also check at renewal that you haven’t exceeded the limit. Note that not every policy has a maximum allowable turnover so you should check your policy documents.

If your turnover has increased substantially or decreased, your broker will set you a new maximum allowable limit. Your premium will also increase or reduce accordingly.

Why your turnover matters for your insurer

Insurers assume that businesses with high turnovers work with a lot of clients or take on large clients with expensive contracts. These factors will increase your risk and the chances of a claim and Insurers will rate accordingly.

It’s so important to review your turnover every time you renew your insurance. It helps to prevent any issues when if and when claims occur.

Sticking to the maximum allowable turnover limit is a term of your insurance. Fail to do so, and your insurer is under no obligation to cover you

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