Owning a business can cause a lot of stress. You might think, once you have insurance, that’s enough to keep your business protected.
But this kind of thinking can leave your business at risk. If you’re not reviewing your business insurance policy every year, you could be underinsured and open to liabilities.
Keep reading to learn why you should get your policy reviewed by a professional to ensure you’re protected!
Think about any conditions that have changed for your business in the last year. Did you buy new equipment? Did you expand your retail business and shops? Did you hire or let go of any employees?
Whether you’re growing or shrinking, these changes can affect the type of insurance coverage you should have. There are many conditions that can change the insurance coverage that your business needs, including expanding the type of work you do.
If you’ve added any type of services and your payroll has increased, you could be open to risks. An annual review of your business coverage will help you evaluate what changes your business has gone through in the last year. This will ensure you fill in any gaps in coverage.
Risk management is another important consideration when reviewing your policy. Did you have any insurance claims in the last year? You might have had a property insurance claim or a general liability claim.
You should take the time to review these and discuss whether you can prevent the situations from recurring. Managing these risks can help you save money and keep your business protected.
If you have small business insurance, you could end up paying a significant amount out of pocket if you are underinsured. This makes it even more important to not cut corners. If this happens, it may not take long for your small business to run out of money.
Some years your business grows and creates gaps in coverage. But other years, you downsize and these changes might be causing your coverage to be excessive.
Without an annual policy review, it’s easy for businesses to continue to pay for coverage that isn’t necessary. Especially if you’re a small business or within the first few years of your business, every cent can count toward your success.
Did you know that the Chartered Institute of Loss Adjusters found that one of the biggest issues around underinsurance is the lack of gross profit calculations and annual declarations?
When you work with your insurance agent, you are working with a professional who will do his or her best to calculate everything that can affect your policy. But mistakes can be made and there can be gaps in coverage.
Catching issues before they can become problems is a great reason to review these policies.
Plus, reviewing each year could end up saving you thousands or more in the future.
Does your business need Employee Liability Insurance? Many UK businesses are required to have this type of coverage, depending on the type of organisation and the size.
Since the size of your company and the amount of employees can drastically change over the course of a year, it’s important to have appropriate coverage. Especially if you’re required by law to have this coverage and you aren’t fulfilling that need, you could be in legal trouble.
Your insurance provider should be able to help you evaluate changes to your employees and the coverage needed. On the flip side, if your company has downsized in the last year, you may be overpaying for employee coverage. This is another area where you could end up saving money.
While reviewing your annual policy can often result in gaps in coverage, you may also be able to increase your insurance while finding lower rates. Ask if it’s possible for you to take money off your insurance premium. This is often an area where businesses save money annually.
Also, consider comparing your current rates with other insurance companies. You can often get a free quote online and easily compare policies and rates. It’s also possible for you to bundle your insurance so that you combine both business insurance with other types of policies.
For example, at Forum Insurance, we offer an all-in-one combined business insurance policy. Depending on your type of commercial business, this policy can save you money with competitive premiums.
As a business owner, it’s important for you to personally understand what you’re covered for under your current business insurance policy. Doing an annual review will give you the opportunity to deeply learn about your coverage.
What are your responsibilities as the insured? What losses are covered or not covered? If you aren’t able to answer these questions, it’s time for a review of your policy.
You may find certain parts of your coverage confusing or have questions for your agent. You certainly don’t want to be surprised in the coming year and end up having to pay for a situation that you thought would be covered.
How has your business changed in the last year? If you’ve grown significantly, you could be open to a lot of liabilities without adjusting your insurance.
Take the time to do an annual review of your business insurance policy. Being underinsured means you could pay out of pocket, which ultimately affects the success of your business.
Contact us today to learn more about how we can help you get all the coverage you need for your business, whether you’re in the public sector, private sector, or need commercial insurance!