Has your insurance kept up with your business?

How often should you review your business insurance? If you are only reviewing the price you are paying for your business insurance every year when the policy renews, YOU are doing it wrong. If your insurance company isn’t reaching out to you for a “risk assessment” on a regular basis, THEY are doing it wrong.

Why is an insurance review so important?  I’m glad I asked…

Does your business look the same now as it did when you started it? Have you added employees, new services, or a 2nd location? If your business is growing, the answer to at least one of those questions is probably, “yes”.

ev·o·lu·tion: (pronounced – evəˈlo͞oSHən) Defined as the gradual development of something, usually from simple to a more complex form.

Most businesses will evolve over time.

For example, a person may start a plumbing business as a one-man show. But now they have several employees and do kitchen and bathroom remodeling, too. The insurance policy designed for a plumber will not provide the correct coverage if there is a loss from the remodeling work they do.

Your business insurance plan needs to be reviewed and updated on a regular basis by you and your insurance agent. Adding a new service or new product may not seem like a big deal, but it can have a huge impact on your liability exposure that you will expect your insurance policy will to be able to protect.

Changes outside your business can affect your liability exposure, too.

Social media is an important tool for businesses of every size in our technology-driven and mobile society. Facebook, Instagram, and Twitter give business owners a very flexible marketing and branding platform, but social media has risks of its own. It’s easy to post images or videos that you may not have permission to use. You might not even know you needed permission, but this can lead to consequences that can put your business in jeopardy. Cyber-liability coverage can extend coverage for these new risks that business owners have when they create a business website and social media profiles.

Speaking of technology and its impact on businesses of all sizes:

People expect it to be easy to pay for services. So, businesses have to provide customers with easy purchase methods by credit card.

**Spoiler Alert**When you are given a customer’s personal and/or payment information, they have an expectation of security of that information. A cyber-breach into your business computer files can put your clients at risk and obviously put your business in a vulnerable position without proper insurance coverage.

You do not have to be a multi-national company to have this risk. According to an article on CNBC small and medium businesses are becoming the primary targets of cyber-attack. Unfortunately, most small business owners don’t think they are at risk.

Why? Smaller businesses do not have the prevention tools in places like firewalls, antivirus software, and data encryption.

Other changes that should be reviewed on your business insurance include:
  1. New employees or interns: If you have employees, you will have to provide workers’ compensation insurance for them. It’s not optional.
  2. New or added business locations: These new locations must be added to your business insurance policy to have accurate coverage in a claim.
  3. New equipment or building modifications: Tools and equipment are big investments. But if the insurance company doesn’t know about them, how can you know they are insured?
  4. Are there company vehicles: If your employees are driving the company vehicles or using their own vehicles for company business that’s a risk that must be addressed by your insurance policy.
  5. Operating and selling products online: Online services bring a completely different level of risk. Shipping products is a different risk than selling the same product over the counter.

As your business continues to grow and change, make sure you’re reviewing and updating your insurance plan to maintain proper protection. If you have not reviewed your business insurance with your agent in the past couple of years, you need to.

Most business owners are concerned about the price of their insurance. Although keeping costs down is important, start the insurance review by making sure you have proper coverage to protect your business.

The one risk that most businesses are NOT prepared for is…the death of the owner or business partner.

Does your business have a “succession plan“? Most business owners are busy working at building and growing their business, and the plan for what will happen to the business when they are gone doesn’t really cross their minds.

Let’s use our plumber from the earlier example: If he dies, who will pick up his tool belt? Does his wife know the plumbing business well enough to pick up where her husband left off? What about any outstanding debts the business has?

What if the business is a partnership? If your business partner dies, their part of the business passes to their heirs.  Do you know who they are? The bigger question is: Do you want to be partners with them? Without a plan, you will be.

If you have a great insurance plan for your business to protect you from fires, theft, tornadoes, and such, that is terrific! But the death of the owner of a business can result in a much larger financial problem for your family and employees.

Don’t know where to start on something like that? Just pick up the phone and call your insurance advisor.

I would welcome the opportunity to help you protect your business! Call our office at 405-340-0606.

Or complete the form below and we’ll reach out to you and get the conversation started.

The information contained in this page is provided for general informational purposes only. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.

Please complete the form below for a quote.

Request Your Proposal Here

Are you ready to save time, aggravation, and money? The team at Allen Drew Insurance Agency is here and ready to make the process as painless as possible. We look forward to meeting you!

Skip to content