The Importance of 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 your business may not offer the coverage that you need once your business grows and expands.
Renewal is a perfect time to review your insurance policy with your agent. If your business has grown, you may not be fully covered. On the other hand, if you have scaled down business operations, you may be paying for more coverage than you actually need. This is why it is recommended to review your insurance policies and your business exposure annually with your agent to make sure that your policy matches your insurance needs.
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 are able to help you avoid coverage gaps.
Business Exposure Changes
From hiring new staff to expanding your business offerings, changes can mean that your current policy is 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 with your own name brand on them vs selling good of others? 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 office equipment, phones, computers, and even office furniture should all be considered when looking at your business personal property limits.
Improvements made to your warehouse, store or office all mean that you need to assess if your current limits are enough. 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 the cars? Most carriers will require the information of all drivers to ensure that 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 perfect time to evaluate the need for other insurance to cover gaps in coverage. If you have employees, you might want to consider adding EPLI coverage. Online retailers or businesses that handle sensitive information from consumers should discuss Cyber Liability coverage. If you have warehouse equipment for packaging or manufacturing, you should consider machinery or equipment breakdown. It is important to not only ensure that your limits cover your exposure, but that you are 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. 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.