As a business owner, it is important for you to monitor your insurance policies to make sure you have adequate coverage in the event of a loss. This is especially true if you have large assets that are at risk of getting damaged over the course of your business operations.
The insurance design specialists at Swarts, Manning & Associates can’t stress how important your annual insurance inventory review is. Things change throughout a policy term; it is critical to have peace of mind that you are properly covered.
4 Most Important Assets That Need An Annual Insurance Review
Even though there are many things to consider when you are reviewing your insurance annually, we believe there are four main areas to keep in mind. If you are concerned you are not completely covered and would like to consult someone about what types of insurance and checks you need to do, please don’t hesitate to reach out. Here’s where you should focus:
1. Property
Your property can be a vital asset to the flow and functionality of your business. Without property coverage, a loss could cause significant damage to the longevity of your business. Even if you did not change or add a property, it is wise to check your property insurance value on an annual basis since that may have changed over the course of the policy term.
2. Equipment
Many business owners set valuations for their equipment inventory to make sure the values do not negatively impact their P&L, balance sheet, and taxes. This form of bookkeeping helps keep your taxes low but requires you to re-calculate the value of your inventory each year.
Insurers know this is a common business practice; they also tend to be very strict with enforcing their equipment limits in the insurance policy. For this reason, we highly recommend monitoring your equipment lists every year not to lose track of your totals.
3. Fleet Vehicles
It is very likely that businesses need commercial auto coverage in their risk management program to cover their fleet of vehicles. When your business activity expands, so does the liability associated with your vehicles and drivers. It is best practice to review your Fleet Safety Program regularly too avoid a discrepancy in the liabilities you need to be covered for. (If you do not have a Fleet Safety Program, our team can help. Start by submitting a request form at the bottom of this blog.)
4. Employees
Employees are your most expensive assets and your highest form of risk. If you are having your employees drive to visit your clients or having them work in potentially hazardous locations, it is extremely important that you have a high-quality general liability insurance plan and a good workers compensations insurance policy in place. As your business grows, you may want to consider adding additional coverage to provide overlapping protection. For example, adding an Employment Practices Liability Insurance (EPLI) provides coverage for claims made by employees, former employees, and potential employees alleging employment-related issues. Getting additional coverage will help you cover the risk associated with your increased operational activities.
The Complete Checklist for Your Annual Insurance Review
Systemizing and having up-to-date company records will ensure all four asset categories are properly accounted. We highly recommend you run through our Annual Equipment & Vehicle Maintenance Checklist when doing your annual insurance review. If you want a downloadable copy, enter your email in the contact form below, and we will send you one.
Need to Know How to Insure Additional Business Assets?
If you have a unique asset that does not quite fit into the four asset categories above, we can help you get the right coverage. We have a team of insurance design specialists that are more than just insurance agents; they are consultants. Give us a call, and we will offer you a complimentary consultation to discuss your situation.
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Call (833) 879-2820 or leave your contact information in the form below.
Swarts, Manning & Associates covers relevant topics for your business weekly. Stay tuned to hear more discussions about managing your insurance and industry-specific tips.
