With the end of the year right around the corner, many businesses are renewing their insurance. It’s tempting to simply get the same coverage you’ve had in the past, but that could be a mistake that proves costly… or even fatal for your business. A serious gap in coverage could be so financially devastating that you have to close your doors, causing you to lose your investment and your employees to lose their livelihoods. Here’s how you can avoid that risk by asking the right questions first.
Has Your Business Grown or Changed Recently?
It’s rare for a business not to change over the course of a year, particularly given the ups and downs associated with recent economic woes, the high cost of fuel, and the pandemic. Some questions you should think about include:
- Do you have more or fewer employees than last year? Are you planning to hire in the near future?
- Has the size of your payroll changed with raises, bonuses, etc.?
- Do you have more employees working remotely than previously?
- Have your annual profits increased?
- Did you expand or open any new locations?
- Did you make improvements to your current property?
- Have you purchased any equipment or machinery in 2022? Vehicles? What about computer or telecommunications gear?
- Has your business changed its inventory or added new products or services?
- Have you experienced severe weather events or increased crime in your area that could put your business property in danger?
- Are you involved in any contracts with other business entities, including subcontractors?
- What are your business plans for the coming year?
Depending on how you answer these questions, you may need to adjust or add to your business insurance coverage to remove vulnerabilities for areas like property protection and cyber liability.
Do You Have Adequate Liability Coverage? (Hint: Probably Not)
Most businesses have liability protection through a commercial liability policy. General liability can be tailored to your operation and covers a range of risks, from injuries on your property to wrongful termination or damage caused by your products. However, that may not be enough liability coverage, especially in today’s litigious business climate.
An accident on your premises could result in a lawsuit with significant damages that exceed the limits of your commercial liability coverage. The difference would have to come out of your pocket, which most businesses aren’t in a position to pay.
The answer is adding a commercial umbrella policy. This insurance covers you should a claim reach the cap on your business liability policy. It picks up where your regular liability insurance leaves off and can be a safety net for incidents like slip-and-fall injuries involving visitors, customers, or delivery people (workers compensation should cover any employees hurt on the job).
You don’t have to have deep pockets to worry about business lawsuits and liability claims. Small businesses have about the same risk of being sued as enterprise-level companies.
A major advantage to having a business umbrella policy is it costs very little to get a million dollars or more in coverage, so it’s a great value for the peace of mind it brings. And if you ever have to call on your business umbrella insurance, it could mean the difference between staying open and shuttering your company forever.
What Kind of Coverage Are You Getting for Your Premiums?
Have you had to file any business insurance claims this year? How did it go? Did you feel like you were adequately protected, or were you taken by surprise, perhaps with unpleasant financial repercussions? Do you feel like your current insurance has you covered, or do you worry about things falling through the cracks?
In general, you get what you pay for with business insurance, like with most things in life. But it’s not a guarantee that high premiums always equal better coverage. You may find yourself open to risks by having the wrong policy, for example, or by not understanding limitations or exclusions to your coverage.
Independent Agents Provide Personalized Service with More Selection
One reason many businesses find themselves with insurance gaps is that their insurance company doesn’t take the time to learn the finer points of their operation, leaving them confused or worse, vulnerable to legal and financial problems. Independent insurance agents like Rodrian Insurance, Affiliate of Robertson Ryan Insurance provide more personalized service than the big companies, although we still offer insurance products from those carriers.
In fact, because independent agents partner with so many carriers, they can give you a much wider selection of insurance policies, so you get coverage that better suits your needs. You’re never forced to choose from a limited menu, which is what usually happens with captives.
There are other benefits to working with independent insurance agents:
- They offer unbiased advice about insurance coverage that’s not based on meeting quotas or making profits for an insurance carrier.
- They’re members of your community, so you’re welcomed like friends and family.
- They know the local business climate in Brookfield and the greater Milwaukee area, so we’re better attuned to potential risks related to this location.
- You can do one-stop shopping for all your business and personal insurance needs, and filing a claim is easier, too.
All of our customers at Rodrian Insurance, Affiliate of Robertson Ryan Insurance have access to their own customer portal. Not only can you file a claim online, but you can also review your policy information 24/7, upload documents, and request certificates of insurance for your business.
Whether you’re ready to renew your business insurance with us or are seeking new insurance agents, the team here at Rodrian Insurance, Affiliate of Robertson Ryan Insurance is ready to help. Call us at 262-781-4750, or reach out online to let us know how we can assist your business.
