Changes in your business equipment, real estate holdings, the amount of inventory, and the number of employees are all good reasons to review your business’s insurance in addition to your annual review. Here are a few tips to keep in mind:
• Keep in regular contact with your insurance company and your agent. Keep your insurance agent apprised of what you are doing in your business. Try to meet with your agent throughout the year and conduct a detailed annual review of your insurance needs. Also do the same thing with your policy company. One of the often-overlooked benefits of a good agent is their knowledge of various insurance companies and not just the one currently insuring your business.
• Understand how business changes affect your policy. Figure out how your policy covers the changes you are seeing or anticipating in your business. This involves understanding the limits and terms of your policy. You can start by asking if you’re properly insured for property damage, liability coverage, health and disability, and changes in asset values.
• Conduct a competitive review. Periodically conduct a competitive review of your insurance needs. Bring in at least two other insurance providers, as well as your current provider. The frequency of the review will be driven by changes in your business, the stability of your current insurance provider, and the need to understand the evolving landscape of business liabilities. A review will keep your premiums competitive, as well as help you learn about coverage gaps in your current policy.
• Identify evolving coverage risks. As the business climate evolves, so should your insurance coverage. Think about what’s on the horizon. Legal trolls are active in areas like product packaging, use of images, and ADA requirements. And who would have anticipated the need to cover cyber-attacks 10 years ago?
• Review safety plans and company policies. This goes hand-in-hand with a business insurance review. Make sure your team is adhering to established employment and operations policies. Getting an insurance claim paid and maintaining reasonable premiums often depend on specific policies being in force prior to putting your policy in place.
Finding the right level of coverage for the right price is possible, but it takes some preparation and planning. Invest some time now to review your insurance policies to save a lot of potential pain and money down the road.
