Posted on May 17, 2014
Each year business owners should take the time to review their business insurance coverage. The ideal time is 2 to 3 months before the policy renewal. This will give companies extra time to fully evaluate the coverage and then obtain quotes to make changes or add to commercial insurance coverage.
The following points should be considered when reviewing policies before renewal time.
Review Changes in the Past Year
It is vital that business owners determine if any changes to operations, payroll, employees or assets require adding or deleting coverage. If sales revenues have increased, it might be time to consider adding additional commercial insurance protection so that the company is not operating without enough coverage to fully protect from claims or lawsuits.
Commercial Property Additions
If new locations have been opened over the past year since policy renewal, then additional business property insurance must be added. The rates vary depending on the industry, facility size and value so be sure to have accurate information available for the borker or agent who will be updating existing policies. The same applies with inventory or equipment. If certain assets were sold or no longer in use, then property insurance limits can be reduced to save on premiums.
Watch State & Federal Regulations
Business owners will also need to stay in compliance with state and federal laws concerning insurance coverage. Most insurance carriers will notify their policy holders of insurance requirement changes ahead of time; however, any changes to coverage requirements can also significantly change pricing.
Obtain New Quotes
Because the business environment, insurance regulations and company needs can change from year to year, businesses will also want to obtain new commercial insurance quotes before renewal. Brokers can assist in the efforts to evaluate coverage and rate differences between carriers.
Competition in the insurance industry can be fierce so developing a strong relationship with insurance professionals can give business owners peace of mind that their needs are being looked out for as it relates to insurance protection.