Our country has undergone considerable change in the last eighteen months. COVID-19 has changed almost everything we do and how we do it. Local businesses have been significantly impacted and have had to adapt to a new way of operating.
These changes have created a need to ensure your commercial insurance will respond to a new set of risks. A business and risk review every twelve months is an excellent way to make sure your commercial insurance program will respond when you need it to the most.
Your insurance needs are likely to have changed as your firm has grown or altered during the last year. Business owners and enterprise organizations should make annual insurance reviews a habit to ensure they have enough coverage and aren't spending more than they need to.
Why Is a Business Review Is Important?
You buy commercial insurance to protect your business and personal assets. If your insurance doesn’t respond to a lawsuit or claim, then you must use business or personal resources to address the issue. A well-designed commercial insurance and risk management program can protect you from unknown claims.
Changes In Your Risk Can Lead to Uninsured Losses
There are many factors that can change within business operations and risk management programs and would necessitate a review of and change to your commercial insurance program. Let’s review a few.
- Changes in operations. If your business has reduced services, hours of operation, or reduced locations, you need to make an adjustment to your commercial insurance. You may be paying more than you need to.
- Changes in payroll. Your workers’ compensation premiums are based on payroll, and with any changes, your premiums can be affected.
- Have you added new services or products? When your business adds a new service or product, your risk changes. Completing a risk review is important to ensure you have the right coverage.
- Do your business purchased new equipment? When your business purchases new equipment, it is important to make sure your property insurance covers the new or additional valuation. Have you purchased vehicles to assist you or your team in performing their duties more effectively?
If this is the case, commercial auto insurance should be added to your business policy to protect you against the financial consequences of road accidents and other liability risks. There are numerous activities done while operating a commercial auto that requires proper insurance, including, making deliveries to carrying persons or cargo.
- Has there been a change in ownership? If you have key person plans, buy-sell agreements, or even a deferred compensation plan in place, and a key member of your management team leaves, you could be putting yourself and your company vulnerable to enormous liabilities or unanticipated consequences.
- Are there new risks created by statute or emerging risks that are not fully covered? Cyber threats are a growing risk for every business. It is important to have an effective cyber prevention program and coverage in place to protect your business's assets. The government can also create new risks through legislation. Having an annual risk and insurance review can help you understand these new risks created by others.
What A Commercial Review Looks Like
It's possible that your company has a number of different insurance plans, all of which should be reviewed. Depending on the type of business and what has changed in the previous year, you may also need to consider new coverage or risk strategies. Here is a sample of the policies we would review as part of our analysis.
- Commercial Insurance Policies
- Directors & Officers Insurance
- Employment Liability Policy
- Cyber Liability Policy
- Equipment Breakdown Insurance
- Crime Insurance
- Business Interruption Coverage
- Workers’ Compensation insurance
Questions We Would Ask as Part of The Review Process
- What changes have occurred in the past 12 months?
- Are there any new employees?
- What have your claims been like?
- Has your business expanded into new locations, cities, states, or countries?
- Has your business incorporation structure changed?
- Have there been any changes in management or ownership?
- Are you offering any new products or services?
- Have you considered your deductible levels?
- Are you selling any products in foreign countries?
- Do you employ any subcontractors?
- Do employees work from home or use personal vehicles on company business?
- Have you entered into any new contractual agreements?
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Leap | Carpenter | Kemps Insurance Agency Can Help
Our team will guide you through the entire review process. We offer integrated risk management solutions for organizations at Leap I Carpenter I Kemps Insurance Agency.
Our team of trusted advisors has the experience and skills to help you protect your company from a variety of financial dangers. We assist business owners like you in evaluating their insurance needs in light of new situations that may necessitate policy adjustments.
Contact us today for your review.