Four Assets That Need an Annual Insurance Review

As a business owner, it’s important to monitor your insurance policies to ensure you have adequate coverage in the event of a loss. This is especially true if you have large assets that are at risk during your business operations.

The insurance design specialists at Swarts Manning & Associates can’t stress enough the importance of your annual insurance inventory review. Things change throughout a policy term; it’s 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 reviewing your insurance annually, we believe there are four main areas to keep in mind. If you’re 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 is vital 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 property, it’s wise to check your property insurance value annually since that may have changed over the course of the policy term.

  • Equipment

Many business owners set valuations for their equipment inventory to ensure 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 recalculate the value of your inventory each year.

Insurers know this is a common business practice; they also tend to be very strict with enforcing equipment limits in the insurance policy. For this reason, we highly recommend monitoring your equipment lists every year to avoid losing track of your totals.

  • Fleet Vehicles

It’s 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’s best practice to review your Fleet Safety Program regularly to avoid discrepancies 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.)

  • Employees

Employees are your most valuable assets and your highest source of risk. If you have employees driving to visit clients or working in potentially hazardous locations, it’s extremely important to have a high-quality general liability insurance plan and a good workers’ compensation insurance policy in place. As your business grows, you may want to consider adding additional coverage to provide overlapping protection. For example, adding 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 manage the risk associated with your increased operational activities.

The Complete Checklist for Your Annual Insurance Review

Systemizing and maintaining up-to-date company records will ensure all four asset categories are properly accounted for. We highly recommend you run through our Annual Equipment & Vehicle Maintenance Checklist when conducting 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 doesn’t quite fit into the four categories above, we can help you get the right coverage. We have a team of insurance design specialists who 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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