Call Us: 281-989-3426

Audit Your Business Insurance

Why You Should Audit Your Business Insurance

It’s common knowledge that various businesses from different industries require various forms of insurance. It may range from commercial property insurance, general liability insurance, E&O insurance, group health insurance, workers compensation insurance and many others. Some businesses may have two or three types of policies while the bigger companies may have more than 5 types of policies in action.

We also know that acquiring insurance coverage requires a financial investment. This, however, can easily be offset by the potential costs of being under-insured as it can exceed the amount you pay in your premiums. This is the reason why you have to always keep your insurance coverage in check. If you have changed in finances, size, or property lately then you might want to audit your business insurance.

So do you know how to audit business insurance when you need it? Don’t worry, you won’t have to crunch numbers as if your life depended on it. You only need to realize what you need to adjust following a change in your company.

If your cash flow has changed

Typical insurance policies have 2 kinds of payments: the regular monthly premium, and the deductible you pay on an injury or damage before the insurance provider begins covering the cost. You may have to play around with the types of payments depending on your financial situation.

  1. If you have more cash on hand then it is better to reduce your monthly premium by signing up for a higher insurance deductible. You just have to be careful in keeping the insurance deductible within the limits you can afford in the event of a claim.

  2. If you have less cash available then you might want to reduce the insurance deductible to an amount you can comfortably pay as needed. Don’t hesitate to shop around other insurance providers that will provide you a good mix in terms of insurance deductible and your monthly premium.

If your business has grown

Have you had an increase in the number of employees since last year? Has your company fleet change? How about your products and/or services? If your business has changed one way or the other, you might want to audit your insurance policies pertaining to each and every department.

  1. Re-check your worker’s compensation policy and disability insurance policy as required by your state. You have to make sure your employees are covered.

  2. You commercial auto insurance needs will change depending on the age, size, and vehicle type of your company fleet. The fact that your cars are one year older may change your insurance policy.

  3. If you availed of a product liability insurance policy on the items you sell or services you provide, make sure your company inventory and business process hasn’t change much that will affect the coverage should a customer be injured by your product or service.

If you have moved or changed premises

A good portion of your overall insurance needs can be traced to your commercial property insurance. If you have moved lately then you might want to take another look at your property insurance. However, some changes may affect the coverage and your monthly premium. You can decrease your monthly premium by installing the following safety measures on your premises:

  1. A security or alarm system

  2. A modern sprinkler system

  3. Hand rails on stairs

  4. Other modifications that decrease the likelihood of accidents or ensure minimal damage in the event of an incident.

Remember that having insurance policies doesn’t mean you should just passively agree to all terms and conditions from your insurance provider. It pays to audit your business insurance to make sure you get the best coverage possible with as little change in the premium as possible. This way, you can rest assured that your business can continue growing.
Leave a Reply