Operating a small business is complicated. In addition to figuring out ways to continue growing, you also have to navigate risks. As your business evolves, your needs will change, and you will have to keep track of your insurance. By assessing your policy every year, you can be more aware of your coverage and whether it needs any adjustment.
The following are a few reasons why you need to review your business insurance every year.
Locate Potential Signs of Weakness
A Chance to Re-read Your Policy
Figure out Different Options
As your business achieves consistent growth, it won’t look the same in year-3 as it did in year 1. Your insurance needs will also change over time. Perhaps you’ll need to increase the limits of your coverage to fill a gap. By doing a yearly assessment, you can ensure that your business is still protected in every area. Making those key changes will prevent your business from being exposed to a major loss in the future.
As your business starts to grow, you will also be exposed to more risks. This is a great time to make adjustments to your coverage. Perhaps you have added more employees to oversee an increase in your products. Adding more employees will increase your payroll. Adding innovative new equipment is another sign that it’s time to adjust your policy. Perhaps you are overhauling the type of work that you perform, which increases your liability risks. Thus, any addition/change that leads to increased risks calls for a policy review.
Conducting an annual business insurance review allows you to evaluate any recent changes that you have made to your business. Perhaps something isn’t going as smoothly as you’d like and has become more of a liability than an asset. Any area of vulnerability should be fixed on time, especially if you are working in a competitive market. You may need to adjust your coverage to keep things headed in the right direction. Use the evaluation period to perform risk management strategies. Perhaps that means implementing new safety measures to reduce the chances of a customer or employee getting hurt. You will want to fill in areas that leave you open to a possible loss. Look over any claims that you’ve had in the previous year and make adjustments to prevent these issues in the future.
Purchasing insurance is not something you buy once and never check again. Instead, it’s an evolving process. You have to check your policy regularly to make sure nothing is wrong. It’s important to monitor the health of your policy. Catching potential issues early on can save you a lot of stress in the long run and protect you from being caught off guard if an emergency happens.
Doing an annual review allows you to thoroughly check your policy and look over every detail. By reading through all of the information carefully, you will have a clear picture of losses that may or may not be covered. You will also know what your obligations are concerning the policy. Speak with your agent if you find an issue in your policy that you would like further clarification on.
Yearly assessments can help you learn about different insurance options. You might qualify for a discount that you were previously unaware of. Maybe you can find a better price for some coverage. Make sure that you look at multiple quotes before settling on one.
Doing an insurance review every year gives you a chance to see what’s working and what needs to be improved. Our experts here at East End Agency will work with you to make sure that you have the coverage you need. Contact us today to get started!