Commercial Insurance: Is it Time to Review Coverages?

 

Can a Commercial Insurance Review Save Business Money Regardless of the Outcome?

Running a business in today’s high tech environment is difficult enough without intensifying your duties with a detail like your commercial insurance coverage. Trouble is, in the internet enabled world we live in today, many feel on-line offerings and reviews of something as important as commercial insurance coverage is good enough.

At Riles and Allen Insurance Agency, we know it takes individual personal attention to find the exact coverage that is both cost effective and comprehensive to properly protect each business in the most cost-effective way possible.

 

There are 3 basic ways a commercial insurance review from Riles and Allen can benefit you on your business’s overall insurance allocation:

1. As a general agent, Riles and Allen may find, on review of your polices, that we can provide the same coverage at a better price from another one or our insurance carriers.
2. We may find you are paying for coverage in an area you either do not need or no longer need because circumstances have changed and your coverage has not been changed for the new circumstances.
3. We find areas of your business which should be covered that are not covered, thus mitigating possible loses which could have arisen due to missing key coverages.

Making sure you have the coverage that best meets your particular business’ needs is part of Riles and Allen’s commitment to you as our client. You may not realize that changes to your business that you consider minor may have a major impact on the type of coverage we recommend or how we structure your policy.

A claim is the worst time to find out you do not have the right commercial insurance coverages, or worse yet, the right amount of coverages for an unfortunate event. As your business changes, your insurance coverage needs to change with it.

 

Many companies start out with a commercial liability policy and a commercial property policy. As their business grows, their insurance needs change. This is why reviewing your business insurance is so important. Some of the most overlooked policies include:

• Errors and Omissions Insurance
• Commercial Auto for Hired and Non-Owned Autos
• Employment Practices Liability Insurance

As a company’s revenue grows, the greater their exposure becomes.

– Have you adjusted inventory property limits to reflect current inventory held?

– Have you increased your product offering, does your liability policy reflect this correctly in case of an unfortunate incident?

 

These are common evolutions that happen in the business lifecycle that signal it may be time to review your business insurance. As your business grows, your business insurance must adjust to ensure you have the protection you want and require for adequate protection from today’s litigious world.

When and how often should you sit down with a general agent like Riles and Allen Insurance Agency? It’s good general practice to sit down with your insurance broker yearly and discuss your policy, but in business, are yearly reviews enough?

 

Reviewing Your Policy: Why Yearly Reviews Might Not Cut it

 

Depending on the size of your business, the industry in which you operate, and the number of employees you have, a yearly policy review could be just enough. For instance, if you run a small shop that doesn’t require heavy equipment and only has 2-4 employees, a yearly review will be sufficient.

However, there are many foreseen (expansion, relocation) and unforeseen (partner retiring suddenly) circumstances that will arise that may require you to sit down with your agent and discuss your policy before year’s end. The great thing about Riles and Allen, we don’t charge a dime for the consultation, we are here to help, even if you find your coverage is just fine for now.

 

 

When to review your commercial insurance policy

 

No matter when you meet with Riles and Allen, we will go over every detail of your policy to ensure that it is still providing enough coverage for your business operations. There are certain events that will dictate when you should review your policy:

 

1. Expansion: If you are moving your business operations to a larger space, taking on more employees or creating new departments, you will need to review your commercial policy. Also, if you are expanding to another city or even country, you need to sit down with your broker because your current coverage may not be applicable in a new area.
2. Downsizing: Less commercial space may require less coverage. What if you are seriously reducing the size of your business? When downsizing you may be getting rid of entire departments or certain members of your staff whose roles have become obsolete. This would be a great time to meet with Riles and Allen to discuss your policy and possibly reduce the total cost of your overall coverage.
3. Hiring new employees: Make sure all new hires are covered as you bring them on and that new drivers are added under your company auto insurance policy if applicable. Additionally, if you are hiring freelancers or contractors to work on- or off-site, there may be considerations to keep in mind in making sure you are covered for their mistakes made in your name. These contractors or freelancers may have their own insurance, but you should still check to make sure you are covered in worst case situations.
4. Changing your business model: What if you are moving your business’s sales model from show room to primarily online? Switching to an automated selling service? No matter what is changed within your business model, your insurance may need to change with it.
5. New equipment: Whether you are buying or leasing new or used big-ticket items, your insurance policy must reflect that. The value of your equipment list may need to be adjusted. We may advise a change in coverage to insure for theft, breakdown, short circuit, etc. Another consideration is replacement value, is your policy written to replace the value of the equipment to your company (factoring in possible down time, damage to deliverable flow), or just the value of the equipment?
6. Company cars: All company cars must be insured. If you are purchasing a new vehicle for yourself or employees and keeping the ownership or lease holder as your company, your policy must be reviewed and updated as needed. Depending on your business, the vehicle may be insured through commercial auto policy or under a fleet plan. Having a great Agency like Riles and Allen, means updating can be just an email away.
7. Seasonal business: Companies that operate seasonally, such as fishing lakes or you pick farms, can benefit from reviewing the portion of their insurance policy that applies to the seasonal part of the business at the end of every work season.
8. Throwing a special event: If you are throwing a special company-wide event to launch a new product, celebrate a milestone, etc., whether it is off-site or on the business’s premises, you should consider Event and Party Alcohol Liability protection. Do not assume a business liability insurance policy covers an event that is not part of the normal course of your regular business operation, especially if alcohol is being served.
9. New partner, board member or key person comes on board: When your company takes on new additions to key personnel, it’s time to meet with your insurance agent to review your policy. All new partners, board members and key personnel may need to be covered the same way you are, depending on the type of business and your set policies.
10. When key personnel leaves: As you would when key personnel join your team, you may need to review your policy when key personnel leave. If a partner quits or passes away, sit down with your commercial broker and update your policy.
11. When you leave the company: If you leave the company but the company is going to carry on without you, meet with your insurance agent to discuss whether you should be removed from the policy, and go over whether you are retaining a title or duties with the company.
12. When you sell the company: Get your insurance agent involved to make any necessary changes or dropping coverages, and whether you are retaining a title or duties with the company.

We often find company owners can be reluctant at having an insurance review. They seem to feel that having a commercial insurance review may result in increasing their commercial insurance premiums. In cases where they do not have enough coverage, or the right type of coverage, that may be true. But, would you rather not have coverage and find yourself responsible for an outstanding liability that was overlooked?

We often find that businesses are paying more than they should for coverages they simply do not need. If your business has changed substantially, in terms of revenue or payroll, let Riles and Allen Insurance Agency take a look. You have nothing to lose, and it costs nothing for our consultation. It is possible that your premium may be higher than it should be.

Sometimes, we find that companies are paying for commercial insurance coverage they don’t need or for coverage that doesn’t properly represent the risks faced by their specific company’s needs. In cases like these, we can often save business owners money, time or even more important, liability for coverage they did not even realize they did not have.

 

Is it time for a commercial insurance review?

 

Contact Riles and Allen today for a friendly personal consultation, it never hurts to have a second opinion.