The Importance of Insurance Reviews
As industries continue to evolve, business owners should consider reviewing insurance coverages annually. An insurance audit will help you identify risks that could impact your bottom-line severely should an unexpected loss occur. The primary areas you should re-evaluate during an annual insurance review are:
General Liability
How much liability protection does your company currently require? The amount of coverage you purchased previously was adequate at the time. But your business or liability exposure may have changed since then.
Property Insurance
Business property evaluations go up and down as commercial real estate values fluctuate. You could now be paying too little or too much for the necessary coverage. The same applies to your equipment, machinery, and your inventory.
Workers Compensation
The premium you pay is dependent on the roles of each employee. If employee roles have changed relative to how business has evolved, this could impact your premium rates.
Business Interruption Insurance
You might have enough insurance to rebuild or replace equipment after a disaster, but did you consider your business operating expenses? You could extend your coverage to cover unexpected losses like a loss caused by your company’s vendors or suppliers.
Insurance Protection of Executives
If you have yet to purchase Employment Practices Liability insurance, remember, company growth increases your risk to potential claims. Similarly, if you sponsor a 401(k) plan, and an employee feels the investment was mismanaged, you need to have adequate Directors & Officers Liability to handle such claims.
Contact an agent today to safeguard your business from potential risk and schedule an annual insurance audit. You might discover changes in your business have exposed you to new risks or that you're paying for coverages that are no longer relevant.