Business owners: why it’s vital to update your insurance as your practice grows

The Scenario

“I’m the owner of an independent practice, and over the past year there has been a lot of change – we have expanded with a second testing room, hired another optometrist as well as starting to bring on a locum dispensing optician, and are now launching a dry eye clinic. We recently also invested in optical coherence tomography (OCT). Is there anything I need to consider in terms of insurance?”

Noah, AOP member

The advice

Emily Tyler, commercial development manager at AOP insurance affinity partner, Lloyd & Whyte

Running an optometry or optical practice means continual change. With these changes come new risks. Your insurance needs to evolve too.

Many practices assume that renewing the same insurance policy year after year will provide sufficient protection. However, failing to regularly review your cover can leave you under-insured, exposing your practice to costly shortfalls if a claim arises.

Your practice insurance should grow with your business

Your insurance needs to reflect your current circumstances. If you have taken on board additional staff or opened a new clinic you need to review your insurance cover. Having invested in OCT, which can cost anywhere up to £70,000, it’s essential to reassess your insurance cover to ensure it aligns with your growing scope.

Key areas to review include professional indemnity insurance for all clinicians, including locums, as well as public and employer’s liability given the increased footfall and team size. Equipment cover should be updated to reflect high-value items like your OCT, and you may also need enhanced business interruption and cyber protection, especially if you're using digital patient records or remote diagnostic tools.

Furthermore, have you updated your rebuild valuation to reflect rising costs? Lloyd & Whyte has found that many practices are unknowingly under-insured. New equipment, additional staff, or changes to practice offerings, are often unreported, which can lead to claim delays or denials.

The risks of under-insurance

Lloyd & Whyte reviewed 242 practices during 2024 and found 30% were under-insured, over 85% had incorrect or missing material facts, and more than half sought additional cover such as cyber insurance and locum protection. These gaps highlight the dangers of not keeping policies up to date.

Cyber security is a growing concern, especially with remote working. Many practices don’t realise the importance of cyber cover until it is too late.

Additionally, many commercial properties are under-insured; over 80%, according to industry data¹ – putting you at risk if rebuilding costs exceed your insured value.

Using tools like the RICS Rebuild Cost Assessment can help ensure your property is accurately insured.

Policy caveats and compliance

Insurance policies often include specific conditions, such as maintenance requirements or security measures. If these aren’t met, claims can be refused. A policy review helps identify these stipulations so you can stay compliant and fully covered.

Make your insurance review simple

We understand time is tight. Lloyd & Whyte’s no-obligation review service is straightforward: just email your current policy schedule, and our expert team will assess your cover, identify gaps, and suggest tailored options, often at competitive rates. Updating your policy is then just a quick phone call away.

Why specialist healthcare knowledge matters

Optometry practices have unique insurance needs. As your services evolve, so too should your risk management strategy. Speak to a broker who understands optical practices to ensure comprehensive protection. Lloyd & Whyte offer expert advice tailored to your profession, avoiding unnecessary cover and ensuring critical risks are protected.

Plan ahead – allow at least five weeks before renewal

To find the most suitable policy and provide you with options, it’s important to start your review at least five weeks before your renewal date. Last-minute requests limit your choices and may result in rushed decisions that don’t fully protect your practice.

Protect your practice – book your review today

Your practice’s future depends on having the right insurance in place. Don’t risk being underinsured or caught out by outdated policies. Book your free, no-obligation insurance review with Lloyd & Whyte’s specialists now. It’s quick, easy, and could save you money and stress.

Book an insurance review online.