As a small business owner, you 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., etc. It’s easy to overlook important changes that may have occurred in your business and need to be accounted for on your insurance policy. Your annual policy renewal is a great time to consult with your independent agent and make sure you are properly protected, as well as not paying for coverage for exposures you may no longer have.
Here are some areas to consider 60 to 90 days in advance of your renewal:
- Has the name of your business changed or are there any new Doing Business As (dba’s)?
- Has the legal entity changed (for example, has the business incorporated or been formed into a LLC?)
- Is the nature of the business basically the same? Are there operations or divisions that have been discontinued?
- Is your building insured to value? This is very important if there is a coinsurance clause.
- Has your personal property total increased or decreased in the last year?
- Have you made improvements to your building such as a new roof or installation of a sprinkler system? These may qualify your property coverage for a credit.
- Have your payrolls or sales changed since last year? General Liability is often rated on one or both of these exposures. Workers Compensation is rated on payroll.
- Have you removed or added vehicles and not advised your agent? Have you hired new drivers?
- How old are the vehicles in your fleet? If some of your vehicles are over 10 years old, you may want to consider dropping physical damage coverage on them.
- Is your business eligible for a drug free workplace discount on your Workers Compensation policy? If so, submit the paperwork to your agent.
- Finally, do you need additional coverages such as Employment Practices Liability, Cyber Liability, Employee Theft, or Professional Liability?
Your independent agent is there to assist you with making sure the renewal process goes smoothly and that you are protected. They may even have a renewal checklist that will come in handy. Take some time before your next renewal to consider these renewal checkup questions.