Regardless of industry or the size of your business, as your business grows, so do your liabilities. And, not being able to recover from an unforeseen event can cost you thousands of dollars.
It’s possible when you first opened your doors, you may have started with basic commercial coverage. You have nurtured your business and now have been open for a while. You have expanded to new locations, hired more employees, and business is booming. Now, it is time to take preventive measures and investigate all of your commercial insurance options by performing an annual check-up on your coverage.
Assess your situation since the last time you reviewed coverage:
Have you added new equipment?
Has your business recently expanded its locations?
Have you added new employees to the team?
Have you added a product line or service?
Have you added vehicles for employees to drive and conduct business?
Conversely, your business may have decreased its number of locations or experienced a reduction in workforce.
These are just a few possible scenarios that could affect the amount of insurance coverage you need. Often times, changes in your business operations will dictate just how much insurance protection you require. At the end of the day, you just need to make sure your policies match your current state of business. Speak to your agent and make sure they understand your current situation, have assessed the potential risks, and discuss if you have the right coverage for your business.
- Think About All Risk
Consider not-so-top-of-mind financial risks that your business may face, such as a security data breach. The Computer Security Institute reported 2 in 5 companies experienced a significant cyber security issue in a recent 12-month period. And, remember what’s at stake. Risk goes beyond the financial implication; don’t underestimate the potential effect on your company’s reputation. Other financial risks include breach of contract, like when mistakes are made that cost your client money or when business owner/officers are sued for wrongful acts of duty.
And, while we’re on the topic, let’s not forget to consider the obvious physical risks that could present themselves: natural disasters, building fires, hail damage, or an employee injured during working hours—whether it’s while performing the job or driving a company vehicle. According to the Insurance Fact Book by the Insurance Information Institute, workers' compensation is the most sought after commercial insurance coverage.
- Take Preventive Measures and Explore Possible Discounts
Have you done your part to minimize your business’ exposure to potential risks? For instance, do you have smoke detectors and sprinklers installed to avert potential fire, or have you installed a security system? Do you have a disaster plan in place protecting both your employees and customers? According to the Insurance Information Institute, you may be able to reduce your premium for certain coverages by following your insurer’s recommendations.
- Speak to a reputable licensed insurance agent
A professional licensed insurance agent can discuss your current situation, let you know if you have the correct coverage, and discuss your options. While it is cause for concern to be under-insured, it can also be problematic (and, unnecessarily expensive) to be over-insured. Be prepared to discuss your five years of claims history and start your comparison shopping--at least 30 to 60 days of renewal date. Keep in mind you will want to reassess your commercial insurance coverage annually to be proactive and save yourself money!