You already understand that commercial insurance is a must-have for your business. But how often should you revisit your coverages, limits, and costs?
I’ll quickly run through several (topics) to keep in mind when it’s time to explore your options. First, let’s begin with the basics.
Business Insurance: Back to Basics
There are dozens of factors to consider when selecting commercial insurance coverage—specifically, your business’s unique combination of risks.
For example, while all businesses might benefit from general liability coverage and/or a business owner policy (BOP), only those that store sensitive client data on servers would receive value from data breach insurance.
Similarly, you’ll want to consider commercial auto insurance if your business owns vehicles (whether operated by you or employees) or liquor liability insurance if you serve alcohol.
How Often Should You Shop for Business Insurance?
Every year! Many business insurance policies renew on an annual basis, which always represents a good time to revisit your coverage levels and rates.
Much like personal home and auto, commercial carriers file new rates with state insurance commissioners every year, so a company that wasn’t competitive last year might offer a much better value this year. Similarly, your current rates could increase, even if you didn’t file any new claims over the past policy period.
Fortunately, carriers typically send out your paperwork 45-60 days before your renewal, which should give you plenty of time to contact IHS Insurance Group, and we’ll help make the process fast and straightforward (more soon).
When are the Best Times to Explore Different Business Insurance Options?
While renewals might offer the most convenient opportunities to explore your business insurance options, they’re far from the only time.
Significant Revenue Growth or Additional Product Releases
Suppose your company recently released a new product or experienced a sharp increase in sales. In that case, this could also open you open to additional liability risks that your current policy might not cover.
Expanding or Relocating
Similarly, if your business has expanded to international locations, you might need to purchase additional coverage under your existing policy or even a new policy altogether, depending on the circumstances.
Even if you’re simply renovating or expanding your current location, it’s an excellent time to reexamine your insurance coverage.
Entering into New Contracts
Did your business score a new client or vendor contract? Based on the specifics, you might want to re-explore your commercial policy to ensure you have adequate coverage in place. In some instances, the client or vendor might proactively request that you adjust coverage.
Making a Large Purchase
Suppose your business recently purchased high-value assets, such as vehicles, properties, or even other companies. In that case, you’ll definitely want to give the team at IHS Insurance Group a call so we can discuss whether or not your existing coverage is adequate.
Related: Commercial Auto Insurance
A Less-Than-Stellar Experience with Your Current Business Carrier
Just like when it comes to personal lines policies like auto and home, not every customer will have great experiences with their insurance companies. If this sounds like you, then it’s time to see what other companies might offer.
Improved Credit Rating
If your business recently paid off significant debt (or acquired new debt), its credit score can change, which can ultimately impact how much you pay for your commercial insurance. Since some carriers might place less emphasis on credit rating than others, shopping around could save you a big chunk of change.
Improvements to Your Business’s Loss Prevention Measures
Installing or updating a centrally monitored fire and burglar alarm can significantly reduce your business insurance rates, which some carriers might emphasize more than others.
Furthermore, if your business also implemented programs to reduce theft and injuries (customers and employees alike), you could qualify for even further reduced premiums.
What Not to Focus on When Shopping for Business Insurance
With these essential details in mind, here are a handful of things that you shouldn’t focus on when exploring your commercial insurance options:
- Don’t get a quote from just one carrier.
- Don’t focus solely on price.
- Don’t automatically choose the lowest limits or deductibles.
- Don’t forget to find out what other clients are saying about the carrier, which is a good indication of what you might expect to experience after signing on the dotted line.
Ready to Research Your Commercial Insurance Options?
Whether your business’s revenue increased, you hired new employees, opened new locations, or your renewal paperwork simply arrived, the next step when shopping for commercial insurance is building a relationship with a reputable, licensed agent.
At IHS Insurance Group, we’ve helped clients like you obtain the commercial insurance their businesses need at prices that won’t break the bank. We’re here to help you succeed!
Need a FREE Quote or have questions regarding commercial insurance? Please fill out our quick GET A FREE QUOTE form, and an agent will get back to you at your convenience!
We look forward to speaking with you today!