Spring signifies renewal and growth, making it an ideal time to ensure your business insurance aligns with your current needs.
Regular reviews of your coverage with your insurance broker or adviser can protect your business as it evolves.
Use this guide to give your insurance a thorough spring clean and sidestep common pitfalls.
1. Review Your Existing Coverage
Start by gathering and examining all your current insurance policies, such as:
- General liability
- Property insurance
- Business interruption coverage
- Workers’ compensation
- Specialised policies
Evaluate Policy Details
Carefully check each policy’s coverage limits, exclusions, and premiums to fully understand your existing protection.
Account for Business Changes
Identify any changes in your business over the past year, such as:
- Expanded operations
- New products or services
- Additional staff
- New equipment purchases
These developments could affect your insurance needs. Document these changes to ensure your current policies provide adequate coverage.
2. Avoid Common Insurance Mistakes
While reviewing your coverage, address common oversights that could leave your business vulnerable.
Overlooking Policy Exclusions
Policy exclusions specify situations that your insurance doesn’t cover. Thoroughly review these sections to identify any gaps in coverage that could expose your business to unnecessary risks.
Underestimating Inflation and Asset Value
The cost to replace property or equipment can increase over time. Update your property insurance to reflect current market values and avoid being underinsured.
Neglecting Liability Risks
Your liability exposure increases as your business grows—whether through more customers, employees, or locations. Ensure your general and professional liability coverage limits are sufficient to mitigate these heightened risks.
3. Adjust Policies to Match Your Needs
If it’s been over a year since your last review, now’s the time to update your policies.
Update Coverage Limits
Based on your review, consider these adjustments:
- Increase property coverage to reflect your current asset values.
- Raise liability limits to protect against heightened risks.
- Confirm that your business interruption insurance can adequately cover potential downtime.
Seek Professional Advice
Consulting with your insurance broker or adviser is essential. They can help you assess your risk profile, recommend necessary adjustments, and ensure you’re not overpaying or underinsured.
By revisiting your business insurance this spring, you can safeguard your operations, avoid costly mistakes, and prepare for future growth. Let this season of renewal be an opportunity to secure your peace of mind.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)
