Ask this question to ten Portuguese business owners. In most cases, the answer will be an awkward pause followed by a "a few years ago, I think." That pause can cost a lot of money.
Over more than 15 years working with SMEs and large companies in Portugal, we have identified a recurring pattern regardless of the sector or company size: insurance is taken out once and then forgotten. It renews automatically. The direct debit goes out at the end of the month. And life goes on.
The problem? Your business hasn't stood still. The policy has.
The number that should concern any manager
There's a piece of data that genuinely concerns us: 58% of businesses have never reviewed their insurance policy after the initial signing. They renew year after year, with the same values and the same coverages — even if the business reality is completely different.
It's not about negligence. It's about a false sense of security that the insurance market, unfortunately, fosters: automatic renewal, automatic billing, and no one asks if what's covered still makes sense for your current reality.
"You pay every month. You think you're protected. But at the time of a claim — you discover you weren't."
What changes in a business in 3 years
Think about what has changed in your business since you took out your current insurance. Probably more than you imagine:
- New equipment — you bought machines, computers, or vehicles that are not on the policy
- More employees — the team has grown but the work accident cover may not reflect this
- New premises — a new office, warehouse, or shop without specific cover
- New industry risks — cyber-attacks, environmental liability, supply chain disruption
- Asset inflation — the value of stocks and equipment has risen but the cover has remained the same
Each of these points represents a real gap in your protection — a grey area where, on the day something goes wrong, the insurer has legitimate arguments to pay less. Or not to pay at all.
A real case: €180,000 that no one expected to lose
We worked with a Portuguese distribution company with 12 employees and 8 years of activity. They had multi-risk insurance since their foundation. They renewed automatically. They had never needed to use it — until the day there was a fire in the warehouse.
The total loss was €230,000 in destroyed stocks and equipment. The policy covered €50,000 — the value declared in 2016, when the business was three times smaller.
This is not a story of bad faith on the part of the insurer. It's a story of a policy that ceased to reflect the reality of the business — and no one realised, because no one reviewed it.
The 3 errors we systematically encounter
- Underinsurance to save on the policy — choosing the cheapest insurance at the time of contracting is a decision many businesses pay dearly for later. Outdated coverage values do not reflect the real risk.
- Not updating when the business grows — did you take out insurance in 2019? Your business has changed. New equipment, more employees, new premises — all of this needs to be reflected in the policy.
- Confusing personal insurance with business protection — personal insurance does not cover work accidents. A private vehicle does not cover professional use. Mixing them can leave serious gaps.
What we do in a review — and why it's free
At Adler & Rochefort, the annual policy review is included in the service for all clients. For new clients, the first analysis is always free and without obligation. We analyse:
- Whether the insured values reflect the current value of assets
- Whether all necessary coverages for your sector are included
- Whether new risks — cyber, environmental, professional liability — are covered
- Whether you are paying for coverages that no longer make sense for the current business
- Whether there are more competitive conditions with our partner insurers
The goal is not to sell more. It is to ensure that when you need to activate the policy — whether it's a small claim or a catastrophe — the coverage is actually there.
The question you should ask today
You don't need to do anything complicated. Just answer honestly: if today there were a fire, a flood, or a cyber-attack at your company, would your current policy cover the actual loss?
If the answer is 'I'm not sure', that's the only sign you need to schedule a review.
"It's not about spending more on insurance. It's about ensuring that what you're already paying for truly protects you."
In over 15 years of working with Portuguese companies, we have never seen a client regret having their policy reviewed. We have seen many regret not having done so.
The data presented is based on the accumulated experience of Adler & Rochefort and studies from the European insurance sector. The cases mentioned are illustrative and have been anonymised.