Business insurance is a policy in place for a set number of months or years. Most of the time, companies renew their policy year after year without thinking much about the process. Yet, that can be a costly mistake. A good time to review your policy is during the renewal period. This is a set number of months before your policy expires that allows you to make changes and updates. Here is what you need to do during that time-frame.
Reviewing Your Policy Means Reviewing Your Risks
During the last year, how many times did you need to file a claim with your business insurance? In some cases, this may be very few. In others, you may feel like it is constant. What is important is this:
What types of claims did you need to file?
Did your policy offer enough coverage to completely protect you from those risks?
Did your policy offer too much coverage, on average, over the last few years?
With this information, you can better make decisions about your next policy. However, it is important to be protective and aggressive here. Having too little insurance can be a costly mistake.
Weigh New Risks and Concerns
We live in an ever-changing world. Recently, there has been an increase in the responsibility business owners face. Employment practice insurance, for example, is now essential. It offers financial protection against claims of discrimination and harassment. Even small businesses need it.
Companies also increasingly need to have cyber liability insurance. Even if you do not operate a large online business, having this protection is necessary. It helps you safeguard your customers’ personal information. Other risks now include electronic business interruption.
Analyzing Value and Needs
Take a look at your business’s property. How much do you own? Has the value of your property changed significantly over the last few years? Do you have an increased amount of inventory or new equipment? Are there vacant buildings you need to now insure?
In addition to this, look over your current policy’s exclusions. Do these still apply to you? And, do you need those forms of insurance? If so, negotiate new terms with your agent.
That’s a key component of this renewal period. Reviewing and negotiating better terms for your company is essential. View business insurance as a fluid document. It is one you can update and change over time to ensure it keeps meeting the goals of your company.