How Often Should I Review My Business Insurance Policy and What Should I Look For?
If your business is growing — or unfortunately likely in this economy getting smaller — you should, as a small business owner be reviewing your business insurance policy annually.
First off, let’s review whether additional coverage limits to your existing policy may be needed. Then, we’ll take a look at whether adding additional insurance for specific types of risk may make sense as your business grows.
If your business has added new products or services, or added equipment or leased or added new space, it makes sense to review your general liability insurance with your licensed insurance professional. It is important to increase coverage limits and review deductibles to maximize your insurance benefit.
Are sales increasing going up? It may be time to look at a business interruption policy to replace revenue should a major loss interrupt your business for a period of time.
If sales are rising, have you added employees? It may also be time to review your workers compensation insurance as well as your benefit package if you provide it. You may now qualify for some volume discounts as your business grows.
Some additional insurance coverage you may wish to consider if your business is growing includes:
Life insurance: If your income and assets are growing, a smart business owner protects his family by increasing the life insurance coverage in place.
Disability insurance: It may be time to protect your income and those of your employees by adding disability insurance.
Directors and officers insurance: As your company grows, you need to protect the board and officers in the company from any lawsuits brought against the company.
Obviously, if sales and revenue are down, a hard look at reducing coverage may in fact be in order. This is where the advice and direction from your trusted insurance specialist is critical.