You already know that purchasing business insurance is a crucial way to protect yourself, your property, your employees and your reputation against any number of unforeseen disasters. Perhaps you are happy with the coverage you have had for years and see no reason to update it, but think again.
There are certain situations when it makes financial sense to review your coverage and compare insurance rates to be sure that what you have is optimal.
When Modifications Occur to Your Business
Change is inevitable, even to the most stable companies. Perhaps you have hired more employees; maybe you have downsized. Did you purchase or upgrade equipment or obtain new office furniture? Have your hours decreased or increased, leading to a smaller or larger amount of customer traffic?
Any of these situations can put you at greater or lesser risk of an insurable event. Conducting an annual evaluation of your policy with these factors in mind is a great step toward getting and keeping the coverage your business truly needs today.
When Your Neighborhood Changes
The location of your property can have a profound effect on your customer base, your level of risk and ultimately your profitability. When a neighborhood undergoes improvements, you may see an increase in customers as well as a raise in property value.
On the other hand, heightened crime and foreclosure rates can make your area less appealing to customers and can lead to less traffic. Keep your surroundings in mind the next time you talk to your agent about the condition of your company.
When Rivals Move In
Healthy competition keeps companies innovative and regulates prices for consumers, but it can take a toll on your enterprise nevertheless. If you were accustomed to being one of the few sellers of a particular product or service in your area and are now contending with an aggressive competitor, you might be feeling the change in your pocketbook.
When your revenue takes a plunge along with your foot traffic, the silver lining in the cloud might be lower insurance rates. In a situation such as this, being up front with your agent is definitely a good plan.
When You Add New Products or Services
When you improve or augment your offerings to your customers, everyone can win. Patrons get what they want; your profits grow. Just keep in mind that added offerings can lead to increased risk, something that your insurance needs to protect you against.
When You Are Paying Too Much For Your Current Coverage
Do you wince whenever your insurance premium comes due? Don’t assume that you are stuck with these costs. There are things you can do to reduce what you pay:
- Increase your deductible. Doing so will lower your premiums, although you will need to pay more out of your pocket before your insurance kicks in should you file a claim.
- Don’t file a claim for small incidents.
- Combine your policies to get a better rate. Bundling your insurance can save you a lot over time.
If you can’t remember the last time you took a long look at your business insurance coverage, the moment has come. Reviewing your current business needs and researching your options can lead to coverage that truly meets the needs your business has today, giving you peace of mind knowing that you will be protected should the worst happen. Best of all, you might even save money. Take the time to compare insurance rates, and you will probably come out ahead.