Your business performs a year-end financial analysis, but when was the last time you updated your insurance policies? Insurance protects your company from liability, natural disasters and cyber threats. Make an appointment now to check, change or update your coverage as you prepare for a successful new year.
Purchase the Right Policies for your Business
Your insurance policies should cover the common risks your business faces and protect operations from product development through customer service. Verify that you have the correct policies for your needs.
Common business insurance policies
- General Liability
- Property
- Business Owner’s Policy
- Business Interruption
- Commercial Auto
- Professional Liability
- Workers’ Compensation
- Directors and Officers
- Data Breach
- Health, Life and Disability
Look Ahead to the New Year
Maybe you want to expand the products you sell, hire more employees, or move to online-only sales in the new year. These changes affect your insurance needs, so be sure your policies accommodate your plans and growth.
For guidance on aligning business plans with insurance needs, see Protecting Business and Personal Goals with Insurance.
Insure Growing Assets
Equipment, inventory and other assets may appreciate in value or you may have recently purchased machinery and technology. If your policies don’t reflect increased value or added assets, you may not receive an adequate payout after a claim.
If you need more detail about property coverage for service businesses, review Janitorial Services Property Coverage as an example of policy considerations for property and equipment.
Catch Mistakes
Annual insurance reviews help you find errors or overlaps in coverage. You may discover you’ve overpaid for coverage or purchased insurance you no longer need.
Ask your agent to review your policies and identify any coverage mistakes or unnecessary duplicates so you only buy the insurance you need.
Ask for Discounts
While maintaining adequate coverage is essential, you can also look for discounts to make insurance more affordable.
Ways to reduce costs
- Increase your deductible
- Install a security system with cameras
- Develop and implement a safety training program
- Strengthen your computer network
- Improve fraud awareness
- Reduce operational risks
- Purchase all your insurance from one company
- Pay annually or quarterly rather than monthly
- Remain a loyal customer
Shop for a Better Rate
As your business changes, your insurance needs and coverage limits change. Make time to shop around for better policy rates and compare coverage, not just price.
When you find a better rate, ask your current insurer if they can match it and consider switching if coverage and service are better elsewhere.
Insurance protects your business, so take time this month to perform an update and verify you have the right coverage for now and the future.
Frequently Asked Questions
How often should I review my business insurance?
Review policies at least once a year and whenever you make significant changes to operations, staff, assets, or sales channels.
What types of insurance do most small businesses need?
Common coverages include general liability, property, workers’ compensation, and professional liability depending on your industry and risks.
Can I change coverage levels mid-year?
Yes; many insurers allow mid-term adjustments to cover newly acquired assets or changing risk exposures.
How can I lower my insurance premiums without reducing coverage?
Ask about discounts, increase deductibles where appropriate, bundle policies, and invest in loss-prevention measures.