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Time for a Commercial Lines Policy Check-Up

By January 19, 2020 April 2nd, 2020 Blog

Whether you are a business owner, manager, or the one with “handle the business insurance” in your job description, you probably have a lot on your plate. Obviously, making a profit and keeping your business growing are of paramount concern.  In addition, there’s making payroll, staying competitive, staying on top of new healthcare and tax laws, complying with state and local regulations, etc.

Exposures can change quickly in your business and it’s easy to forget that your insurance needs to adapt to these changes. Let’s look at a few areas to consider.  If you can answer yes to any of these questions, please contact us:

New Exposures

  • Did you add locations during the year?
  • Did you add buildings to your current location?
  • Any new vehicles or drivers?
  • New equipment that needs to be covered under an inland marine floater?
  • New products being manufactured/sold? (This is critical because it could change the rating basis for your general liability.)

Exposure Changes

  • Any vehicles sold?
  • Any equipment sold?
  • Any locations sold?
  • Have you had a reduction in inventory?
  • Have you experienced a reduction in sales?

New Coverages

As your operation grows, you should consider purchasing additional coverages to protect your business.  Consider the following coverages available:

  • Equipment Breakdown – especially important if you are a manufacturing/processing operation
  • Crime – this would include Money & Securities, Employee Theft including Employee Retirement Income Security Act (ERISA), Forgery,  and Computer Fraud
  • Employment Practices Liability
  • Data Compromise & Identity Recovery
  • Blanket Personal Property if you now have multiple locations
  • Reporting form on your personal property if the values fluctuate

Drop or Reduce Coverages

Sometimes it makes more financial sense to reduce your insurance or self-insure some exposures.  Here are a few examples:

  • Drop comprehensive and collision on vehicles over 10 years old.
  • Reduce the value of scheduled contractors equipment that is covered on an actual cash value basis.
  • If you own an older building and likely would not replace it with as large of a building in the event of a total loss, consider insuring it on a Functional Replacement Cost basis.
  • Higher deductibles on your property and auto.  Consider adding a property damage deductible on your General Liability.
  • If you’re comfortable with your financial reserves and loss control measures, consider self-insuring some of your exposures.This checklist is a good start when reviewing your insurance exposures, but make sure you consider your business’s unique needs, as well.  If you resolve to start each new year with an insurance review it can lead to a productive and profitable year!

 

The information was presented with help from Central Insurance.  It is intended to provide guidance and is not intended as a legal interpretation of any federal, state or local laws, rules or regulations applicable to your business. It is not intended as an offer to write insurance for such conditions or exposures.

Choosing the right insurance agent is one of the most important decisions you will make. The Turner Agency Inc. has covered the insurance needs of the Upstate of South Carolina and beyond since 1962.  Our team provides choice in coverage options from a carefully selected group of financially sound, reputable insurance companies; ease of doing business; and unparalleled advocacy on your behalf.

As your needs change, we’ll be with you every step of the way.  Contact us today and let’s get started!