When running a business, there are many things on your mind. Renewing your commercial insurance is most likely not very high on your to-do list. But, for small and large companies alike, the “burden” of coverage is the same. If you do not have the right coverage, you risk losing assets and losing business in the process. Why take the risk?
If you overlook potential gaps in your coverage or let your policy lapse, on the other hand, can expose you to financial vulnerabilities. That’s why you should have a commercial insurance renewal checklist in place. A step-by-step process will always help you stay organized and make informed decisions that will protect you and your business.
Does Your Business Need a Commercial Insurance Renewal Checklist?
Yes, it does! Insurance is not that thing you can just “set and forget about.” Your business is an evolving organism, it grows in time, and with its growth, the risks potentially increase. By reviewing your insurance coverage regularly, or at least during renewal periods, you steer clear of unknown risks.
To make it easier for you, here is a quick breakdown of the potential situations where your business coverage should be revisited:
- Business Growth: Has your company expanded, whether by adding more employees, increasing revenue, or acquiring new assets? If the answer is yes, you should definitely consider updating your coverage.
- Changing Risks: Has your business been the victim of cyber threats or phishing attacks? Every industry faces its own set of risks, and most online companies will be exposed to all sorts of emerging risks. Reviewing your coverage becomes a must in these circumstances.
- Legal and Regulatory Changes: Are you in an industry where laws and regulations change frequently? You’ll want to make sure your coverage is compliant with any new requirements.
- Avoiding Coverage Gaps: Are you frequently moving office or updating your equipment? It’s easy to overlook these aspects of your business. A checklist helps you stay thorough and ensures that nothing is missed.
How to Put Together Your Step-by-Step Commercial Insurance Renewal Checklist
Understanding your current risk landscape will help you determine if your policy needs to be adjusted. To help you with the checklist process, we’ve put together a step-by-step guide.
Step 1: Review Your Current Coverage
Review your policy and ask yourself these questions:
· Are all your business locations, employees, and assets included in your existing policy?
· What about your liability limits? Do they still make sense for your company’s size and operations?
Step 2: Assess Your Business Risks
Take some time to evaluate the risks your business faces today. Can you think of any new threats that weren't on your radar when you last renewed your policy? This could include changes in technology, shifts in the market, or external factors like supply chain issues.
Step 3: Update Business Valuations and Inventory
Has your business acquired new assets, equipment, or inventory? If so, it’s essential to update these values with your insurer. You want to make sure in the event of a claim, you’ll be adequately compensated. In this case, your policy must reflect the true worth of your assets. In situations where you have invested in high-value equipment or you have expanded your business operations, this becomes even more critical.
Step 4: Check for Compliance with Legal and Regulatory Requirements
Some industries require specific forms of liability insurance to stay compliant with licensing boards. Also, different industries have different insurance requirements, and these can vary by state and federal law. Review any legal or regulatory updates that may impact your business.
Step 5: Evaluate Your Claims History
Are there any claims you’ve made over the past year? Were they handled quickly and efficiently? Were there any gaps in your coverage that led to out-of-pocket expenses? This type of evaluation will reveal weaknesses in your current policy and highlight areas where additional coverage could be necessary.
Step 6. Explore New Coverage Options
Insurance providers frequently introduce new products that may be relevant to your business. If your business has started offering remote work options, you want to look into additional liability coverage for work-from-home setups. It’s also worth asking your provider about coverage options you don’t have like business interruption insurance and protection against unwanted or sudden cease of operations.
Step 7: Get Competitive Quotes
Just like any other business expense, it’s a good idea to shop around before renewing your policy. Don’t focus solely on price: look at the coverage and service levels each provider offers. A cheaper policy isn’t worth it if it leaves you exposed.
Step 8: Consult with an Insurance Advisor
An insurance advisor will give you invaluable insights during your renewal process. They have the experience and expertise to identify gaps in your coverage, recommend new products, and ensure your policy meets your business’s unique needs. Having a second set of eyes on your policy is important.
What to Avoid During Insurance Renewal
Now you have a checklist, and you are all set, right? Not quite… It’s easy to fall into a few traps during the renewal process. We recommend a few very common pitfalls to avoid:
- Do Not Rush the Process
Insurance renewal isn’t done at the last minute. Take some time to review and make any necessary changes.
- Do Not Overlook Small Changes
Any tiny change in your business operations can lead to gaps in your coverage. Check your account for any modifications, no matter how minor.
- Do Not Focus Only on Price
Yes, the cheapest policy is very tempting but you don’t want to find out later that you’ve invested in inadequate coverage. Try to find a policy that balances cost with comprehensive protection.
Take the Next Step to Secure Your Business
Don’t leave your business exposed to unnecessary risks. Use this commercial insurance renewal checklist to make sure you’re fully protected and prepared for whatever comes your way. Whether you're reassessing your coverage, exploring new options, or consulting with an advisor, staying proactive is key to keeping your business safe.
Ready to take action? Contact Carolinas Insurance & Investment Group today for personalized guidance and competitive insurance solutions tailored to your business needs. Protect your future: get started now!