Your business probably doesn’t look exactly the same as it did a year ago.
Maybe you hired employees. Bought new equipment. Added a vehicle. Increased your sales. Started offering a new service. Moved into a larger space. Or perhaps your business simply grew without you realizing how much had changed.
That’s why an annual business insurance review is so important.
At The Agent Insurance Services, we believe your insurance should keep up with your business. Taking the time to review your coverage each year can help uncover gaps, identify outdated limits, and make sure you’re not paying for coverage that no longer makes sense.
Your Business Changes — Your Insurance Should, Too
It’s easy to purchase business insurance and then put it on autopilot. But even relatively small changes to your operations can affect the coverage you need.
During an annual insurance review, we may ask questions like:
- Have you hired or reduced staff?
- Has your payroll changed significantly?
- Have your annual sales increased?
- Did you purchase new equipment, tools, or technology?
- Did you add or remove business vehicles?
- Are employees driving their own vehicles for work?
- Have you moved, renovated, or added another location?
- Are you offering any new products or services?
- Have you started working in new states or geographic areas?
- Are you using more subcontractors?
- Have you signed any new leases or contracts?
- Has the value of your building, inventory, or other property changed?
If the answer to any of these questions is yes, it may be time to adjust your insurance.
Growth Can Create Coverage Gaps
Business growth is exciting, but it can also create new risks.
For example, imagine you purchased your commercial property insurance several years ago. Since then, construction and material costs have increased, you’ve renovated your space, and you’ve purchased additional equipment.
If your insurance limits haven’t changed along with your business, you could discover after a loss that your coverage isn’t enough to rebuild or replace what you have today.
The same can happen with liability insurance. As your business grows, takes on larger projects, signs bigger contracts, or serves more customers, your potential liability can grow with it.
An annual review gives you an opportunity to identify those gaps before you have a claim.
You May Need Coverage You Didn’t Need Before
As your business evolves, you may also face risks that weren’t relevant when you originally purchased your policy.
Depending on your business, an annual review could uncover a need for coverage such as:
Cyber Liability Insurance
If you store customer information, accept electronic payments, use cloud-based software, or rely on technology to operate, a cyber incident could have a significant impact on your business.
Employment Practices Liability Insurance (EPLI)
As your team grows, so does your exposure to employment-related claims involving issues such as discrimination, harassment, or wrongful termination.
Commercial Umbrella Insurance
If your business has grown substantially, your underlying liability limits may no longer provide the level of protection you want. An umbrella policy can provide additional liability protection above certain underlying policies.
Commercial Auto Insurance
Adding vehicles or changing how vehicles are used can affect your insurance needs. Even employees using personal vehicles for certain business purposes may create exposures worth discussing.
Professional Liability Insurance
If your business provides advice, expertise, designs, recommendations, or professional services, general liability insurance may not cover every type of claim you could face.
The right coverage depends on your specific business, which is exactly why a conversation with your insurance agent can be valuable.
An Annual Review Isn’t Just About Adding Insurance
Reviewing your insurance doesn’t automatically mean buying more coverage.
Your business may have changed in ways that allow you to remove or adjust coverage, too.
Maybe you sold a vehicle. Got rid of equipment. Closed a location. Stopped offering a particular service. Reduced inventory. Or changed how your business operates.
Keeping outdated information on your policies could mean you’re paying to insure something you no longer have or maintaining coverage that no longer fits your needs.
A good insurance review is about making sure your coverage is appropriate for your business today — not simply adding more insurance.
Your Contracts May Have Changed
Insurance requirements often appear in leases, customer agreements, vendor contracts, and subcontractor agreements.
A new client may require higher liability limits. A landlord may require certain property or liability coverage. A contract might require you to carry an umbrella policy or add another organization as an additional insured.
Your annual review is a good opportunity to discuss these requirements and make sure your insurance program aligns with the commitments your business has made.
Your Insurance Company May Not Know Your Business Has Changed
One of the biggest misconceptions about business insurance is that your policy automatically adjusts as your company grows.
In many cases, your insurance company only knows what you tell them.
If you’ve added employees, equipment, vehicles, locations, services, or other exposures without updating your insurance, your current policy may not accurately reflect your operations.
That’s why communication with your insurance agent matters.
Don’t Wait Until You Have a Claim to Find a Coverage Gap
The worst time to discover that your business insurance isn’t keeping up with your business is after something has already gone wrong.
An annual insurance review gives you the opportunity to ask questions, discuss changes, and better understand what your policies do — and don’t — cover.
At The Agent Insurance Services, our goal isn’t simply to sell you a policy and send you on your way. We want to understand your business and help make sure your insurance continues to make sense as your company evolves.
Has Your Business Changed in the Last Year?
If it has, your insurance may need to change with it.
Contact The Agent Insurance Services to schedule a business insurance review. We’ll take a look at your current coverage, talk through what’s changed, and help you determine whether your insurance is still the right fit for your business.
Because your business shouldn’t be protected for where it was last year. It should be protected for where it is today.