Business insurance is a critical part of running a successful business as it protects your business from risks. Business insurance policies change year after year, which is why it is important to review your existing insurance policy before you renew it. Renewing a business insurance policy that does not safeguard your business from risks is pointless and is a waste of your hard-earned money. That is why we have compiled a list of tips for you to consider before you renew your business insurance.
Obtain multiple quotes
Renewing or buying a business insurance without doing research and shopping around for the best deal is a mistake you do not want to make. Reach out to multiple business insurance agencies and obtain their policy quotes and benefits brochures. This will help you to make an informed decision before renewing your existing policy. Even if you have no complaints with your current business insurance plan, it doesn’t hurt to look around in the market for a better one.
Check coverage clauses for property
Whether you run your business out of a leased property or from your own property, business insurance costs should include coverage for your property. Some business insurance plans do not have coverage listed for vacant buildings and leased property. Check the coverage provided for property under the plan you are looking at before you renew your business insurance.
Review your business’ insurance needs regularly
You need to do a thorough valuation of your business which includes calculation of the net worth of your business and equipment and also your liabilities. With the growth of your business, the business insurance needs of your company might defer. Inventory growth, the size of assets and liabilities may change and may require a different business insurance coverage. Be sure to review your insurance needs periodically and weigh them against the growth of your company.
Get your data insured
What good is your insurance plan if the business insurance costs don’t provide coverage for data? Data breaches and thefts are a huge business risk and having business insurance for electronic and cyber data is imperative. Check with your business insurance provider for adequate coverage of electronic data and security breaches before renewing that insurance plan.
Determine replacement value of equipment
This is an important business insurance tip to consider. Be sure to check the market value of office equipment and machinery to determine the insurance limits. Insurance companies roughly estimate the value of equipment as $10,000 per employee and that is the book value of the coverage that you will receive in case of an accident. Checking the market cost of all your equipment will allow you to understand the business insurance costs that you are eligible for and how much you will need to pay in case of a difference between book value versus replacement value.
These are the important business insurance tips that you need to remember before you renew your business insurance. Contact a reputed business accounting firm for accurate business valuation and asset and liabilities calculations before you choose a new business insurance plan.