Every business is different, however every business has one thing in common and that is change. Often business owners will purchase an insurance policy or create a risk management program and will file the documents away. It is imperative that business owners review their policies and programs often and make sure that they are still in line with your company growth and changing exposures.
Three New Year’s Resolutions to protect your business:
Conduct an annual policy and risk management program review
You should review your policies to make sure your limits are adequate for your business in its current state and are in line with your current needs. Programs should be reviewed and adjusted often especially if new acquisitions or sales to assets have been made. Make sure that your payroll and sales figures are accurate to avoid large audits.
Know what your policies cover
This is where the details of your insurance policy as it relates to your business really matters. Insurance contracts can differ in wording and coverage. It is important to make sure that your coverage is in line with your needs. It is always good to ask your insurance broker to provide a summary and to ask any questions that you have.
Do a risk assessment
After having a discussion of what your policy covers, you should look at where you are potentially exposed. Is there coverage available to help fill those gaps? Are there any anticipated changes to your operations or exposures? Any expected changes should be accounted for and discussed with your insurance professional and a plan of action discussed.
Insurance is designed to protect your business from a large financial loss. Reviewing your coverage this year should be a part of your business plan as it is essential to protecting the success of your business.
