Whether you are business owner, manager, or just the one who handles the insurance for your company, 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.
With the day to day business needs, it’s easy to overlook important changes that may have occurred in the last year that should be accounted for on your insurance policy. Exposures can change quickly in your business and it’s easy to forget that your insurance needs to adapt to these changes. Read on to see what types of changes or new exposures can affect your insurance.
New Exposures
- Did you add locations during the year?
- Did you add buildings to your current location?
- Do you have any new vehicles and/or drivers?
- Did you add new equipment that needs to be covered under an inland marine floater?
- Do you have any new products being manufactured/sold? (This is critical because it could change the rating basis for your general liability.)
Exposure Changes
- Vehicles sold
- Equipment sold
- Locations sold
- Reduction in inventory
- Reduction in sales
New Coverages to Consider
As your operation grows, you should consider purchasing additional coverages to protect your business. Here are a few to consider:
- 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.
While your renewal date is is a great time for us to review your business needs, let us know of any changes to ensure your coverage is keeping up with your business needs. Contact us today!
