The end of the year is a great time to have your commercial insurance policy reviewed and updated if needed. Having the proper insurance for your business is crucial for the stability of a company. Businesses usually have much higher liability and potential costs then a consumer does. Not only do they have property, but also employees, finances, customers, workman’s comp, etc. Because of the complexity of the coverage, it is a great decision to annually meet with your insurance agent to review your business insurance policy.
There are many aspects of a business that change year to year, and these changes could effect your insurance.. Save yourself time and plan a head for some of these questions.
Which assets require protection?
Business assets are often a large part of the value that an insurance policy provides. Assets change over time as you purchase new equipment, add on or remodel your building, or purchase new vehicles. These assets could make a significant change to your business insurance. Here are some of the common assets to consider for your annual review,
- Insured Premises
This would include your building and built-in equipment. Have you remodeled this year? Or added on to the building? If you have, mention this as it could be unprotected by your current policy.
- Business Personal Property
If you have purchased new office furniture or new office equipment such as computers, printers etc. Tell your insurance agent as these items often hold a large amount of value.
-Loss of Income
Will you lose income if you have a fire and it destroys your building? This part of your business insurance policy will compensate for this. Make sure that it will cover the entire cost of replacement.
If you purchased new cars, trucks, or any other vehicle, you’ll want to talk to your agent to make sure that it is covered.
Assets are a huge part of nearly any business. They are also the most likely to be damaged or destroyed. Another area that requires proper coverage is liability. Since you are a business, many people will pursue lawsuits if they are injured on the premises of your business. There are many events and aspects that affect your commercial liability insurance policy.
- Auto Accidents
Does your policy provide enough coverage in case of one of your vehicles being the cause of a major accident? Also your insurance agent will make sure that your insurance meets any state requirements.
If someone falls and gets hurt while shopping at your location, you could be held responsible and have to pay a large amount in damages. Your insurance policy will cover the costs of these suites in most cases.
- Employee Injuries
If you have employees, then you need to have adequate workers compensation. It can be extremely expensive if an employee is injured on the job. Insurance can provide protection against this.
- Errors and Omissions
This is a real danger for many businesses. If you have anything that has changed, discuss it with your commercial insurance agent so they can adjust your insurance accordingly.
While many of these assets and accidents can raise your premium, there are also cost savings involved. For example if the business can afford to pay larger deductibles, then the insurance premium can usually be lowered. Or if you are willing to take some financial responsibility for law suites, then this can also reduce the cost of your commercial insurance. Lastly if you have older vehicles or have less employees, then decreasing your insurance cost is a real possibility.