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Re-evaluating Your Business Insurance Policies For 2022

The start of a new year is a good time to re-evaluate how you operate your business. One area that could be worth assessing for improvements is your insurance policies.

Many of us allow our policies to automatically renew each year without changing them. While re-evaluating your policies might seem like a hassle, it could have many benefits. This could include reducing costs, protecting yourself against additional risks and making sure that your current coverage is still valid.

Below are just a few questions to ask when re-evaluating your business insurance policies for 2022 that will help you get the best coverage.

Do You Need to Change Your Existing Policies?

Businesses change over time and so do their needs. You may find that your current policies no longer fit your current business.

For example, you may currently have commercial property insurance in place that covers you against damage or theft of certain contents. Since taking out this policy, you may have bought new equipment, which is likely not covered by your old policy. You may want to consider adding this equipment to your policy so that if it is damaged or stolen, you will be compensated.

On top of adding things to your existing policies, consider if anything can be removed. Perhaps you’ve scaled back in the last year and no longer have as many employees working for you – it could be worth changing your worker’s compensation insurance if you’re currently paying coverage for a certain number of employees.

It’s also worth checking that your current insurance policy is valid. A change of business address or a change to your company name could void your current policies. Notify your insurer of these changes to make sure that your policies are still valid.

Do You Need to Take Out New Policies?

It may be time to take out completely new policies. For example, if you’re thinking of hiring your first employees this year, it could be mandatory that you take out worker’s compensation insurance if you don’t already have it in place.

Other new policies may not be mandatory, but could still be recommended. For example, if you own a roofing business, you may decide that now is a good time to take out general liability insurance if you don’t already have it. A lot of companies put off taking out this insurance, only to end up having to pay lawsuits costing thousands of dollars out of their own pockets.

Not having general liability insurance in certain industries may even negatively affect your ability to win over certain customers, since they may only be comfortable working with a contractor if they are insured.

On top of considering taking out new policies, consider whether there are any policies worth cancelling altogether. Perhaps you took out insurance for a vehicle or a machine, but are now thinking of selling this vehicle or machine because you no longer need it. It could be worth cancelling your insurance policy if you don’t plan to replace it.

Are You Paying Too Much?

Even if your needs haven’t changed, it could still be worth re-evaluating your business insurance policies to see if you could save any money. Insurers are constantly adjusting their rates and introducing new deals (particularly for new customers). You may find that you’re able to get the same policy from another insurer for a cheaper price.

A lot of us assume that if we stick with the same insurer, we’ll save money through loyalty incentives such as no claims bonuses. However, you’d be surprised by the deals that are out there. You may save money by bundling business insurance policies with a different insurer or by simply taking advantage of limited deals available to new customers.

You should definitely compare other insurer rates if you have recently made a claim. Your insurance rates are likely to go up once you make a claim because you now pose a greater risk to the insurer. That said, other insurers may not charge as much.

There are many other ways to save money, such as getting rid of coverage you don’t need or upping your deductible. By making policy changes with the same insurer you may even save money – you may not even have to switch to a new insurer.

How Should I Re-evaluate My Business Insurance Policies?

You should start by reading over your current business insurance policies to see what they actually covered you for. This will give you a good idea of what needs to be changed – there may be things you’re covered for that you had completely forgotten about.

To help identify new risks, carry out some of your own personal risk assessments. What are some of the biggest threats to your business that you are currently not insured against? You should consider whether there have been any disasters in the last few years that could have been less damaging by taking out insurance. You should also consider what disasters other companies within your industry have been facing recently.

When choosing the best insurance policies, consider hiring the help of a broker to help you compare policies. Insurance brokers are independent agents that do not work for a single insurance company. They are experts in insurance and have access to a huge amount of insurers. They can work with you to find the best policies based on your needs and budget.

By getting in touch with an insurance broker today, such as Harrah & Associates, you can start to re-evaluate your insurance policies and find the best coverage.