Business changes to disclose can include new engineering disciplines, larger projects, overseas work, mergers, acquisitions and other material changes.
Changes that may need to be discussed with the insurer include:
- adding a new engineering discipline
- substantially increasing project values
- commencing higher-risk or unusual activities
- beginning overseas work
- opening an overseas office
- acquiring or merging with another engineering business
- changing the legal entity
- substantially increasing turnover
- taking on significantly different clients or projects
- materially changing the use of subcontractors
Not every day-to-day business change requires an immediate policy amendment.
However, a material change in the firm’s professional activities or exposure can affect the insurer’s assessment of the risk.
Where the engineering business is taking on work materially different from what was originally disclosed, it is worth checking the insurance position before the new activity becomes established.
