End of year is busy for many businesses. Your company may be occupied with closing out the books for this year or doing strategic planning for next year. While you are putting 2016 to bed, now would be a good time to quickly review your current insurance policies, especially commercial insurance. Here are 4 steps to help you do that.
Step 1: Round ‘Em Up
Have you received paper or electronic copies of your policies? If so, do you know where they are located? Who has access to them? It is recommended that they be filed in a fireproof box, electronically, or at an alternate location.
Broker contact and claim information should be distributed to key personnel so that it can be easily accessed in the event of a claim or catastrophe.
Step 2: Inventory What You Have
All of those policies you’ve purchased don’t mean a thing if they aren’t up to date. Here are things you should check with your basic policies before the new year:
Commercial General Liability: Check your limits, deductibles and exposures. Do you have coverage for all locations and aspects of your business?
Commercial Property: Have you purchased any new real estate or contents in the last 12 months? Was your insurance broker made aware of this new property? Have you received a recent appraisal that would affect your policy limits?
Automobile Insurance: Do you have current auto ID cards for all insured vehicles? Have you purchased any new vehicles or sold/traded in any old ones? Have you made changes to any current vehicles that would affect their value? Are all of your drivers on file with your insurance broker?
Equipment Floater: Is all equipment scheduled on your equipment floater? Are you leasing any equipment for more than 30 days? Are you paying for duplicate coverage on your equipment through your vendor that may also be on your insurance policy?
Step 3: What’s New?
Over the course of 12 months so much happens that often small details can become big problems. What’s new to your business and does it need to be insured?
- Have you purchased new real estate, electronic equipment or tools?
- Have you added any new operations to your current business?
- Have you created any new operations that may not be covered under your current policies?
- Have you expanded your online presence? Does it include processing transactions?
- Have you extended your operations beyond the coverage territory of your policies?
If you have made any changes to your property holdings or business operations, you may not have coverage under your current policies. That leads us to step 4.
Step 4: Contact Your Broker
Contact your broker if you need auto ID cards or copies of your policies. If there have been any changes to your holding or operations, Hayes Brokers offers a free risk management analysis to determine whether your current coverage applies.
This might also be a good time to review any coverage that you declined at your last renewal meeting. Employment Practices Liability Insurance, Cyber Liability, Flood, Earthquake and the like can seem like a waste of money in one season of your business, and of the utmost importance in another.
Contact our office today to find out more.