01 / The meaning
What it means.
Examples include adding a location, increasing a limit, extending activities or reporting higher exposure under an adjustable policy. The amount may relate only to the remaining period, but it should not be assumed to follow a simple daily calculation. Minimum premiums, different rating factors and the nature of the change can affect the amount. An insurer may also require new conditions alongside the extra charge.
Ask for a breakdown showing the insurer’s premium separately from taxes, broker fees and any financing costs. Paying an invoice without checking the endorsement can leave uncertainty about what changed and when. Obtain confirmation of the effective date, accepted activities and revised terms, especially where a new project or item needs immediate protection. An additional premium does not necessarily remove unrelated exclusions elsewhere in the policy.
02 / Put it in context
A practical example.
Hypothetical example: a retailer opens a second shop three months before renewal. The insurer proposes an additional premium and new security conditions. The owner checks both the cost breakdown and the endorsement before assuming stock at the new address is included.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Confirm the precise change and the date from which the insurer accepts it.
- Separate insurer premium, taxes, fees and financing charges in the quotation.
- Check new conditions and obtain the revised schedule or endorsement.
04 / Start a useful conversation
A question for your broker.
What does this additional charge buy, for which period, and what new terms accompany the change?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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Tell us what you do, what has changed and what you need to understand.