It’s time to review your small business insurance coverage. Do you know what to look for?
If you own a small business, having insurance is a must. It’s a practical and sensible way to make sure that your business is protected from a variety of harmful situations. Unexpected events can be very costly if your business becomes involved in a lawsuit or experiences a property loss.
As a small business owner, you should be conducting a small business insurance review annually. Since the new year is right around the corner, it’s the perfect time to review and evaluate your current policy to determine if you still have the types of insurance you need or if your coverage needs have changed over the course of the year.
Some common reasons for reviewing your business insurance policy include:
- Conditions have changed
- You may be paying too much for your coverage
- You need to be carrying worker’s compensation coverage
- You may catch costly mistakes
- You may be able to get lower rates
Unfortunately, small businesses across Los Angeles have been hard-hit due to the COVID-19 pandemic. While some businesses have had to permanently close their doors, others will strive to make it through with a mixture of risk tolerance, adaptation, and, let’s face it — luck.
By working with an insurance broker, you can determine whether changes to your business over this past year have exposed you to new risks for which you’re unprepared, like the pandemic. You want to make sure that your business stays on the right track during these toughest of times. Having the right amount of insurance coverage is an important step in the right direction.
What’s changed?
The purpose of an annual business insurance review is to determine whether there have been changes to your business over the course of the year that affect your insurance coverage. Before meeting with your insurance broker, it’s a good idea to make a short checklist of questions about the following topics:
- What’s changed about your business?
- What’s changed about your employees?
- What’s changed about your online security?
- What’s changed about vehicles used in your business operations?
Depending upon the answers to these questions, you made need to make some important changes to your coverage including:
- General liability
- Property coverage
- Worker’s comp coverage
- Employee liability coverage
- Data breach or cyber liability coverage
Do you need to make adjustments to your coverage?
If you have added or eliminated vehicles used in your business operations, have new drivers that aren’t on your current policy, or if the usage of the vehicles covered by your policy has changed, you may need to make policy changes to your commercial auto insurance policy.
If you want to get knowledgeable information about commercial auto insurance policies, Daniel Fraisse, Los Angeles insurance broker, will review your current policy. He can determine whether you need to add coverage, increase coverage limits, or even decrease coverage depending upon how circumstances have changed over the course of the year.