Business insurance does not remain the same year-after-year. Coverage is constantly changing to match the evolving needs of your business. Business owners continually look for ways to lower costs. Yet, risks continue to rise.
As a business owner, it’s imperative you take a close look at your current policy. This way, you can ensure it matches the risks and needs of your company - all while staying within your budget.
Now Is the Right Time
In the fourth quarter, most businesses have a lot to do. Make sure reviewing your business insurance coverage is one of those tasks. Plan for the upcoming year. You'll need to know at least these 5 items:
- How much liability risk you’ll require
- What your likely insurance costs will be
- What type of insurance your business needs
- If any adjustments are planned to workers compensation regulations and coverage
- Which local regulations are shifting, such as local, state or federal laws
Your business insurance agent can assist you in each of these areas. By reviewing this information now, you can plan better for the year to come.
What Did You Use?
Look back over the last 12 months. What types of claims did you make? How much actual coverage did you use? For example, if you filed a single liability insurance claim last year, and perhaps averaged 1 or 2 in the years prior, you may not need additional coverage. If your claim rate is higher, added coverage will be an important investment.
What risks are changing? One area of concern is workers compensation coverage. Your claims risk may rise. Your insurer should alert you of this at the end of the previous year. You may be a higher risk if too many claims occurred during the last year. This can cause costs to rise. Replacing an existing insurer with one with a lower rate may help.
Think About Assets, Too
Did you add more assets? These may include another location, additional vehicles, more equipment, or higher inventory levels. More assets mean more coverage is necessary. Did you sell any real estate or equipment? Did you reduce your overhead costs? These scenarios can play a role in the coverage you need next year.
Work with your business insurance agent. Discuss your current policy. What changes can help protect you in the year to come? Which policies can reduce your costs? Creating a new, customized policy now can give you some relief going into the new year. Contact us for a Fort Lauderdale business insurance quote.