Why You Should Be Exploring Your Insurance Options Every Year
Businesses large and small already have enough to deal with just running their business. The more tasks they can simply “set and forget” the better. When it comes time to renew insurance every year, it’s far easier to just simply renew the same coverage they may have been using for years.
But businesses can also change significantly from year to year, so you want to make sure your insurance keeps pace with those changes.
Here are 3 reasons you should review coverage and explore insurance options every year.
Appreciation and Depreciation Happens
As property values around your business rise, you need to ensure you are adequately covered to protect yourself against gaps in coverage in the event of a crisis.
Businesses that allow employees to use their own devices may not need the same coverage on business equipment that they did when they needed to provide a desktop computer for every employee.
The company vehicle you purchased in 2014 may not need the same coverage in 2015 or it may even need increased coverage because it is now being used more.
Packages Can Be Configured to Meet Your Changing Needs
The smaller your company is, the fewer types of insurance you may choose to carry. As your business grows or becomes more high profile, you may have more things to protect yourself against.
When you were a small home-based business, you may not have thought Professional Liability Insurance (sometimes referred to as Errors and Omissions Insurance) was necessary.
As your business grows, however, so does your liability, which means you need to protect your business from a growing list of threats.
Make Sure You Are Getting the Best Coverage for the Price
As much of a hassle as it might be, it is also important to get quotes from other insurance companies. Doing so serves a two-fold purpose.
In some cases, you may find that another company offers you a significantly lower rate, while in others, it can help you negotiate with your current insurer.
Sometimes, you may find you are already getting the most competitive rates, but be careful to make sure the insurance quotes you are getting are for the same levels of coverage.
In some cases, the price may be lower because the coverage is not actually as good. In other cases, the price may be the same, but the coverage significantly higher.
Insurance will generally constitute a healthy portion of your overhead. You want to make sure you are adequately protected against a number of different events, but you also want to make sure you aren’t paying for insurance you genuinely don’t need.
One way to ensure this is to sit down with your insurance agent each year to review your coverage and get at least a few quotes from other companies.
Category: Insurance
