What's in Your Policy?
Conducting a regular business insurance policy review is critical. There is no doubt about the fact that if you are the owner and operator of a small or medium-sized business, you have plenty on your plate. You have many facets of business demanding your attention, and it is simple for some things to slip through the cracks. It is exceptionally easy when it comes to details that do not require your attention on a regular basis.Your company's business insurance is something that you likely think about rarely, if ever. When an event takes place that requires your insurance to work for you, there could be an unpleasant surprise regarding your cover.By taking the time to go over your business insurance cover regularly, you can feel secure knowing your protection is up-to-date and accurate.
When Should You Review Your Cover?
If you started your insurance cover over a year ago, it is a good idea for you to have a business insurance policy review. A good rule is to plan on meeting with your insurance expert once every year to look over your cover and make any necessary adjustments. Additionally, if you experience changes in your circumstances, you should plan a review of your insurance policy.
What Changes Cause Me to Have My Policy Reviewed?
There are a number of reasons you should consider a policy review even if it has been less than a year since your last review. These reasons include:
- If you added new products or services that your company offers to consumers
- Changes in the directors of your company
- If you have new trade partners, distributors, or sales channels
- Increasing or decreasing the size of your team
- Recently acquired business assets or equipment which may not be a part of your present policy
- New entities created since your last policy review
- If you recently sold equipment or downsized your operation, you may see lower rates after a review
- Changes in the levels of stock you have on hand
- New business risks. Including physical dangers to your business as well as vulnerability to cyber threats
- Reduced or increased turnover
How Do I Manage My Insurance Policies?
Working with your insurance expert is the best way to manage your insurance and make sure your business cover is adequate. Only an estimated 62% of all Small to Medium Enterprises (SMEs) have the correct cover for their business. There are many reasons for incorrect cover, but a typical cause is a depreciation.For example:
You purchase a new van for your floral shop at the cost of $40,000. Your insurance company will insure your vehicle at a value of $40,000 for the first year of ownership. After the first year, significant depreciation of this asset occurs. If the van has a useful life expectancy of five years, then there is a depreciation of $8,000 from the second year of ownership.
What Are the Benefits of Reviewing My Business Insurance Policies?
Aside from helping you to avoid decidedly unpleasant surprises, reviewing your various business insurance policies with an insurance professional offers the following four benefits.
- Time Saving - A professional can help you look through your policies quickly without the fuss that comes when some people try to understand insurance lingo.
- Knowledge - Our experts in the field of business insurance will listen to the details about your company and know what cover and how much you will need.
- Save Money - Not only will you have the correct insurance cover, but we will make sure you get the best price possible for the protection you need.
- Answer Questions About Funding - Our insurance professionals can direct you to the best way to fund your insurance and help you discover new ways to improve your cashflow.
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A business owner and their insurance broker discussing an existing policy.[/caption]
What Happens at an Insurance Review?
Visiting an insurance professional for a policy review is an easy and typically pleasant experience.
- Plan the Review - Once you contact us regarding a review, we will make an appointment to meet.
- At the Review - We will discuss changes and talk about any areas of concern.
- After the Review - Depending on the results of your review, we will create a plan to making sure to meet your needs. We will implement the changes necessary to ensure that your policies are in the best shape possible.
Insurance Changes Checklist
At the end of your insurance policy's term, you should make sure that your insurance expert is aware of all changes by going over this list.
- Have you purchased new vehicles or equipment in the past year?
- Did you sign a new lease?
- Have you expanded your business' physical location?
- Are your inventory valuations accurate?
- Have you hired subcontractors?
- Have you assessed the risks of cybercrime to your business?
- Do you have business interruption cover to help in the event of unexpected problems that may require you to shut your doors for a period of time?
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Have you open a new location and your existing business insurance policy now redundant?[/caption]
Do You Need a Review?
It is clear that a review of your business insurance policies is both useful and necessary.Make sure your insurance cover is adequate and avoid unpleasant surprises by contacting your Connect Business Insurance expert today. A few minutes of your time now can save you untold amounts of money as well as grief in the future.