Annual Policy Review

Policy Review

The Importance of Doing an Annual Policy Review

As your business grows, your insurance needs also change. A policy that was suitable for your business operations when you first started may not offer the coverage that your business now needs. Your insurance policy needs to evolve to keep pace with your growing business.

Your policy renewal is the perfect time to review your insurance policy with your agent. If your business has grown,  make sure that you have the appropriate coverage and limits.  On the other hand, if you have scaled down business operations, you may be paying for more coverage than you need.  An annual policy review can help ensure that you are correctly covered, and not under- or overinsured.

Your agent can help you determine if your insurance exposure has changed and if your current policy is adequate. The more your agent knows about your business, the better they can help you avoid coverage gaps.

Business Exposure Changes

From hiring new staff to expanding your business offerings and services, changes can make your current policy no longer suitable. Adding new products and/or new services means that you may need a different type of insurance that better suits your needs, especially if you are on a Business Owner’s Policy. Have you started selling goods under your own brand name vs. selling goods from others? Are you selling a new category of merchandise or providing a new type of service? Are you working with independent contractors or taking on more complex contracts with your clients? Your general liability limits should be reviewed, and an umbrella policy may be necessary.

Property Exposure Changes

Have you changed locations? A larger or smaller location will impact your insurance needs, especially if you own the building.

Have you added more inventory and/or business personal property, such as new equipment? Adding more inventory, office equipment, phones, computers, and even office furniture should be considered when reviewing your business’s personal property limits.

Improvements to your warehouse, store, or office mean you need to assess whether your current limits are sufficient. Upgraded equipment, expanding your sales inventory, and adding new fixtures and furniture can all mean that your property limits are no longer sufficient, which could leave you not fully covered in the event of a claim.

Auto Exposure Changes

If you have a commercial auto policy, have you added or replaced any of the vehicles recently? Do any new employees drive company vehicles? Are employees using their own vehicles for business use? Most carriers will require information on all drivers to ensure they have acceptable motor vehicle reports.

If you do not have a commercial auto policy but you use your car for business purposes, your personal auto policy may not cover you in the event of a loss if you are using your car for commercial purposes.

Evaluate Other Insurance Needs

This review is a good time to evaluate the need for additional insurance to cover coverage gaps. If you have employees, you might want to consider adding EPLI coverage. Online retailers or businesses that handle consumers’ sensitive information should discuss Cyber Liability coverage.  If you have warehouse equipment for packaging or manufacturing, you should consider the risk of machinery or equipment breakdown.  It is important not only to ensure that your limits cover your exposure, but also to be fully covered for all aspects of your business.

At Fixated Financial and Insurance Solutions, we work closely with our carriers to bring the best coverage for the best prices. We know that your business needs are unique, and that insurance is not a one-size-fits-all solution. We review all of our policies at renewal to ensure that they are placed with the best carrier for the most competitive price.  Coverage reviews are an important part of the services that we offer for new and existing clients.