The market environment changes rapidly, and you are in a continuous process of realigning your business with it. Obviously, your insurance needs also change accordingly. If your business has changed significantly over the past year, you run a risk of being uninsured, underinsured or potentially overpaying for coverage that you no longer need. Renewal is probably the best time to review your policy to insure that it still provides the necessary protection and if there are any opportunities to reduce your premiums.
Here are some of the questions that can help business owners conduct a pre-renewal review of their insurance policies:
• Have you expanded or moved your business operations to new geographies, or have you made significant changes to your existing facilities? New geographies or extensions will mean different risk exposures and hence you might need to update your General liability policy or Commercial property or Business owner’s policy.
• Has there been an increase or decrease in the number of staff or type of staff? You might have shifted your employment preference to contractors. This might necessitate a change to your Workers compensation policy.
• Have you made any changes in your product mix by adding or discontinuing product lines? Your insurance policies might need a change to reflect the correct type of business operations or changes to products and completed operations. You might also need an E&O insurance coverage or adjust limits, if you already have one.
• Has your exposure to cyber threats increased? Have you increased your online business, or are interacting with your customers more digitally? You might want to add a Cyber liability endorsement or purchase a standalone product.
• Have you added or reduced any business equipment? Conduct an asset inventory analysis. You might need an update to your Commercial property or Business owner’s policy.
• Did you purchase or sell commercial vehicles, changed the utility or travel distance of the vehicles, rented additional vehicles, or permitted employees to use their own vehicles for company business? Businesses that bought or sold a business vehicle, rented vehicles or let employees use their own will need to adjust their commercial auto insurance coverage.
• Conduct a loss run analysis along with your insurance agent. Which are the assets and coverage areas where you had losses? Did you run out of insurance at any point in time or was your claim denied? Accordingly, evaluate your coverage, limits and deductibles.
• Have you signed any new contracts with General Contractors that require new or increased coverage requirements? Sharing the contract terms with your agent or broker gives them the tools by which to evaluate if your coverage is adequate or if it requires new coverage or increased limits.
• Is there an opportunity to reduce your premiums through additional discounts or purchasing a more competitive insurance product from the market? Even if you haven’t undergone significant changes since you purchased your business insurance, your annual insurance renewal is a good time for comparison shopping.
• Are there any new insurance coverage or products that are relevant to your business? Business risk profiles are evolving rapidly, and insurance companies are adding additional risks and launching new products more rapidly than ever. You should look at opportunities to improve your risk management profile by evaluating these new products.
Note that though the policy renewal notice is a good prompt to review your insurance policy and make changes, there are changes in circumstances when you should notify your insurer immediately to make sure that remain protected. If you are in doubt, call us and ask.
Reviewing your insurance policies is a complex exercise and could be overwhelming – especially if you have complex policies. If you need assistance in looking over your existing policies, call us on 800-903-8690 or 972-293-2139 or contact us online here.