What in Tarnation is a Material Change?

Let's say your business has had a good few months. You've hired ten people, signed a new client, and moved into a bigger office. Brilliant. But you've not mentioned any of it to your insurer…

If something goes wrong and you make a claim, they might not pay out.

That's a material change.

So what actually is it?

A material change is any change to your business that would affect your insurer's decision to cover you, or the price they'd charge. When one happens, you're obligated to tell them.

It's only fair, really. Your insurer priced your policy based on who you were at the time you took it out. If they'd have charged you more, or declined cover entirely, had they known about the change, they can reduce or refuse a claim because of it.

The problem is that nobody sends you a list of what counts! Crikey.

Things that are commonly material

New premises. Different location, different risk profile. Always notify.

Significant headcount growth. More people means more risk. Your insurer priced based on who you were, not who you've become.

A new service line or revenue stream. If it falls outside what your policy describes as your business activities, it may simply not be covered.

A big contract win. Particularly if it changes your revenue materially, or comes with specific insurance requirements from the client.

Expansion into a new territory. Especially the US. This one is non-negotiable. We work with a lot of businesses that want to expand into the ‘States. Make sure you’re covered.

The good news

Telling your broker takes five minutes. At REALLY HONEST®, we hold quarterly check-ins with every client to make sure their cover keeps up with their business. So nothing slips through the gaps.

Not sure if something counts as a material change? Please just ask. That's what we're here for.