What is involved in the mid-term adjustment of a client's policy?

The mid-term adjustment of a client's policy primarily involves changing the terms of coverage. This process typically occurs when a policyholder experiences a change in circumstances that affects their insurance needs, such as acquiring new assets, changes in business operations, or shifts in risk exposures. The purpose of a mid-term adjustment is to update the policy to reflect these new conditions, ensuring that the coverage remains appropriate and adequate.

For instance, if a business increases its inventory or expands to a new location, the existing policy might no longer provide sufficient coverage. Through a mid-term adjustment, the insurer and broker can modify the policy terms, such as increasing coverage limits or adding new endorsements, without having to wait until the renewal date.

This is distinct from cancelling an insurance policy, which ends coverage altogether, negotiating a renewal, which pertains to the policy renewal process before it expires, and submitting a claim for damages, which is a separate action taken when a loss occurs.