| NYC Business Group
5 Things You Should Do Before Renewing Your Small Business Insurance
Business insurance should be renewed annually. Unlike your car insurance policy that renews itself automatically, business insurance does not always. Therefore, small businessowners should know when their policy is expiring to act/renew beforehand to avoid being left uninsured for a period. Be that as it may, insurance brokers and/or the insurane carrier may send a notice to the insured (a month or two before the policy expires) to notify them to renew their policy. Since business insurance policies are usually 1-year contracts, small businessowners should take their time to familiarize themselves with several things. As time elapses, the business also changes. Ergo, you should keep the following things in mind before renewing the policy:
I. Inventory or service changes
If your business has changed in any way, so should your insurance policy. If you have additional products or services over the past year, you should consider adding or increasing your product liability coverage. Your business insurance renewal can depend on the types of products you sell, the services offered, and the inventory. For example, if you started making deliveries, you should have a commercial auto policy to avoid liabilities (whether you own the vehicles, lease, or rent them). Also, if your business has expanded, increasing your commercial property insurance limit is recommended. We offer a wide market for different kinds of businesses, call us today to learn more!
II. Location
Your business’s location is crucial because it determines your annual premium. Insurance companies consider several factors while insuring your business; location is one of the factors. Therefore, inform your insurance broker before renewing the policy if you moved your workplace or office into a new area. Take this into consideration, if you moved into a safer building or location, your monthly premiums may decrease. You may not have moved your office or retail store into a different area, but you’ve renovated or built an extension. You must inform your broker because the cost of rebuilding or repairing the property after an insured event like vandalism or fire destroys the building. Sometimes, your existing general liability coverage may be re-examined if you renovated or built an extension. It is prudent to always inform your insurance broker about the changes you’ve made in your business.
III. Equipment
As your business grows, you need to expand, and buying new equipment is inevitable. Whether you add new equipment or replace outdated equipment with new ones, protecting your investment should be a priority. Hence, when renewing your business insurance, you might add equipment breakdown insurance or even increase the coverage limits to enjoy peace of mind knowing that you are financially protected if the unthinkable happens. Don't find yourself underinsured, call our agency today to find out more about coverage for equipment, and you business!
IV. Online Business
Nowadays, most businessowners prefer offering online business (selling products and services online) because it is easier to reach more potential customers and advertise. If you opt to conduct more business online, you need to take precautionary measures. Whether you are selling goods and services online or through a 3rd party marketplace like Facebook, Amazon, Etsy, and Wayfair, you can be held liable for damages. Therefore, include a product liability policy when renewing your business insurance. Cyber liability protection is vital because you handle sensitive information prone to cyber-attacks. As a businessowner, you are held liable for illnesses, property damage, and injuries your customers suffer from the products you sell. To avoid financial loss and probable lawsuits, protect your business with the right insurance policies.
V. Annual Revenue
Annual and projected revenues are primary factors insurance companies consider determining your insurance policy cost. Ergo, inform your insurance broker if your yearly revenue has increased or decreased. For example, your current business interruption policy might not be enough if your annual revenue has increased. Therefore, if your business is interrupted, you may find it rough because you were underinsured. To avoid any inconveniences, talk to your broker to help you decide the way forward.
Are There any other Changes that can Affect my Coverage?
Since your business changed over the past year, some changes might decrease your annual premium while others may increase the premiums. Remember, some of the changes require additional coverage to ensure you are protected. Finding a good price and the right coverage can me alot to take in, our Agents are here to help you!
Here are some of the changes that can affect your coverage:
- Switching to a home-based business – while this might not seem like an issue, it is a factor you should keep in mind. If you started working from home or started a new business at home, you may need a home-based business insurance policy. Usually, personal home insurance does not cover events in a residential property resulting from business-related activities. Talk to your broker to determine whether you need to purchase a new insurance policy, or the existing policy offers enough protection to you and your employees.
- Installing new security measures – if you had not installed security systems such as alarm systems and surveillance cameras, additional efforts to boost security can reduce your premiums. Taking the responsibility of ensuring that your business is secure can save you a lot of money in the long run.
- Operating in different states exponentially increases the risks you might face if you travel a lot or move from one state to another. Inform your insurance broker to ensure you are fully protected if you encounter a mishap.
Bottom-Line
Knowledge is power, and if you research before renewing your business policy, you can evade lawsuits and financial loss. Take your time to research and talk to your broker to choose accurately. Finally, ask questions if you are unsure to avoid inconveniences in the future. Allow our Agency help you build you knowledge, and form the right Business Owner's Policy for your business today!