To-do lists can sometimes feel never-ending. And when you finally get down to “renew your business insurance policy” on your list, you may be tempted to simply renew your existing policy. However, we recommend that you consider giving things a second look.
As Business on Main emphasizes, too many companies lose money or are exposed to risks that have been overlooked due to either errors made at the time the policy was purchased or because policies were not updated to reflect a business’ growing needs. That’s why an annual review of your business’ insurance policy is not a precaution, it’s a necessity.
Consider this scenario. You started your business fifteen years ago with only a few employees, minimal supplies, and no company vehicles. Now, you have a staff of a few dozen employees, several computers and quality workstations, significant amounts of sensitive data stores internally and externally, and five company vehicles. Do you see how your liabilities and risks have changed over the years? Every time your business grows or expands in some way, your insurance policy must be updated to cover the new risks and liabilities.
So how should you conduct an annual insurance review? The National Federation of Independent Business (NFIB) advises to meet with your insurance agent or broker to review the coverage you currently have and “ask them to recommend any changes that might be beneficial to your business.” From there, you’ll want to take a look at what the NFIB refers to as “the four fundamentals,” which are property/casualty, general liability, workers’ compensation, and auto insurance policies.
These aren’t the only specific areas you should look at though. Other areas that should be reviewed on a regular basis are business interruption, key person, life and disability, and healthcare. For example Small Business Chronicle notes in its Business Insurance Renewal Checklist shares the following scenario:
“Taking stock of the previous term, [business owners] must determine whether their current coverage meets the needs of their employee population… under the current agreement, the high deductible may be adversely affecting the annual budget. Likewise, the disability insurance plan currently in place may not adequately cover those who need it.”
Are you regularly reviewing your business’ insurance policies to ensure that your business and your employees have optimal coverage? If you are in need of assistance in selecting the right policies and coverage, contact the insurance experts at Lamb Financial Group at 1-866-481-5262.