For many business owners, business insurance* is a constant in their business – a key part of their ongoing risk management strategy. However, just because it is a constant in your business, that doesn’t mean business owners should adopt a ‘set and forget’ approach to their business insurance.
An annual review of your commercial insurance can be time-consuming, which can make it tempting to automatically renew your existing business insurance policies year after year after year.
However, if the circumstances in your business have changed over the past year, and your business insurance isn’t updated to accommodate those changes, you may unwittingly run the risk of being underinsured or potentially paying for business insurance coverage that no longer applies to your business.
It’s important that your business insurance policies meet your company’s evolving needs. Your annual business insurance renewal process is the perfect time to diligently review your existing business insurance and determine if your current policies are still providing an adequate level of protection. This business insurance reviewal checklist will equip you with some handy tips to remember when it comes time to review your business insurance annually.
Get a head start on your business insurance renewal
Business owners may benefit from getting a head start on preparing for their business insurance renewal process several weeks, or even months, before their renewal deadline arrives.
Getting a head start on your business insurance renewal process will give you the necessary time to gather the financial information and documents that business insurance providers require. To get accurate business insurance quotes at renewal time, it’s important that you provide all the information about your business that your insurer requires.
This will help your insurer to accurately assess the risks to your business to determine what, if any, policy adjustments should be made to match the current risks your business may be exposed to.
Six essential questions to answer before renewing your business insurance
To prepare for renewing your business insurance, review your business insurance and ask yourself the following questions about your business.
1. Have you moved to new business premises?
Moving from a home office to a commercial property, expanding to a new location, or opening an additional office may trigger the need for changes to your Business Insurance (also referred to as a BizPack) including Contents and Public Liability.
In some cases, your business insurance costs can actually go down – especially if your new premises is smaller and includes enhanced safety features, such as a wired alarm system or sprinklers.
2. Has your number of employees changed?
As employees join or leave your business, workers’ compensation coverage levels should be adjusted. This can help ensure that all employees are covered and business owners aren’t paying for staff members who are no longer working for your business. The insurance renewal process is the perfect time for business owners to verify that they have the right level of workers’ compensation coverage in place.
3. Are you offering new goods or services?
Changes in the products or services your business offers may require adjustments to your Professional Liability insurance coverage, and businesses that update product lines annually may consider revisiting their Product Liability coverage.
4. Did you buy new business equipment in the last year?
The rates for Commercial Property insurance are based on the type and amount of equipment a business owns. Changes to the value of your business property may have an impact on your annual business insurance costs.
5. Have your business practices changed?
If your business practices have changed significantly, you may benefit from reviewing and adjusting your existing business insurance, such as your General Liability insurance, or adding new policies to ensure that your business is protected from other potential risks that may present themselves.
6. Did you buy or sell commercial vehicles?
If your business bought or sold a business vehicle in the last year you may need to adjust your commercial auto insurance coverage if you haven’t done so already.
7. Have you got a business insurance checklist?
A business insurance checklist can be a great way to help manage your annual commercial insurance renewal so that your business has the appropriate level of cover for another successful year in business. You may use the checklist outlined above, or you may create one that is tailored to your specific business needs.
Whichever you choose, with a well-developed business insurance reviewal checklist, your annual insurance renewal can be made faster, less painful, less time-consuming, and ultimately will result in your business actively reducing its exposure to risk for another year.
BizCover for a better business insurance experience
At BizCover, we know small business owners, and we like to think we know a little about small business insurance too.
Whether you are a new small business owner or a serial business owner, BizCover can help you reduce your business risk by making business insurance fast, easy, and cost effective.
Choose BizCover when renewing your commercial insurance and compare competitive business insurance quotes from leading insurers online and get covered fast – as in, 10 minutes fast.
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769.