By Sarah Mueller
Running a business, regardless of industry, can be extremely rewarding. It can also be a risky endeavor. Unexpected accidents can pop up at any time, and it is important to be protected and have the right insurance coverage in place to be ready for any unexpected and unfortunate scenario.
One thing owners need to know about business insurance is that when there are significant changes to the operations, their existing policies may not be enough to cover all potential risks. It can also be that they’re paying for coverage that they don’t actually need. Striking a balance is hard, but it is imperative.
To make sure a business has the right coverage in place, it is essential to do a yearly review of all business insurance policies. This is where the business insurance renewal checklist comes in.
Not only does it make it easier to assess the current needs of the operations, but it is likewise an ideal opportunity to consult an insurance agent to identify which areas of the business need to be protected and if the owners are qualified to receive discounts.
Bear in mind that since the renewal process can be time-consuming, make sure to start doing the assessment of business needs several weeks before the deadline for renewal. This gives owners ample time to get all financial details to know if changes in the policy are needed.
The business insurance renewal checklist varies depending on the needs of the operations, but to get started, here are some questions that can help owners during their annual review of their insurance policies:
- Do you offer new products or services? Have you launched a new product? Have you changed any of your services? Business owners may want to consider updating their Professional Liability.
- Have there been any staff changes? If there are changes to the number of employees or employment status, owners may be a need to review their Workers Compensation insurance.
- Did you expand your operations to another area or move to a new office? Operating in a new space may mean adjustments to business insurance. This does not automatically mean that the premiums will be much higher. In fact, these can be lower when the new site is smaller and comes with advanced safety features. Same if you have new pieces of equipment for the operations? The Commercial Property insurance policy may need to be updated according to the type of new pieces of equipment purchased.
- Did the business practices change? The existing General Liability insurance may not be sufficient to protect the business against new risks.
Using an insurance renewal list is beneficial in ensuring that any major changes to the operations will be protected. But even if there are no changes, it is still good practice to regularly update existing policies. Consulting an insurance agent will also help business owners better understand what needs to be covered and what is (or is not) protected under insurance.
Sarah Mueller is a marketing manager at CoverWallet , a tech company that makes it easy for businesses to understand, buy and manage insurance – all online and in minutes.