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Your Commercial Insurance May Cost too Much. Here’s How to Know

4 min read

No business owner wants to overpay, but there’s a good chance you are overpaying for insurance or you are significantly underinsured for risk if your commercial policies haven’t been reviewed in the past 12-18 months. Getting a review by a third party might make a difference.

Reviewing your coverage annually not only ensures that everything is up-to-date and reliable in case incidents or accidents occur but also makes sure that you’re not missing out on savings. Using an independent insurance agent could be a plus because the independent agent can compare several companies for you and simplify the process.

Managing your commercial insurance is an important process that can save your company money and headaches down the road. Make sure to understand your coverage limits and evaluate possible risks before selecting a policy.

Having a thorough review with an insurance professional can give a business owner the assurance the policy covers all the assets while also accommodating any added activities or investments. There are several important reasons to have a professional review your policies.

 

Are you overpaying? You might be missing out on savings
If you’ve ever had to research and compare commercial policies, you know it can be a daunting task. But not doing the research can end up costing you more than necessary– many times, policies are offered by different companies at vastly different prices. Taking the time to compare commercial policies from reliable companies can be well worth it in terms of both coverage and savings.

 

Are there new risks? 
When planning for your business, it’s important to think about potential risks that could occur. From vandalism and theft to cyber liability, taking the time to review and evaluate what risks may be faced is essential. Commercial insurance can help protect against certain risks, such as property damage, liability claims, and financial losses due to theft or other occurrences.

 

A fire or water main break: Will a disaster wipe you out?
When it comes to commercial insurance, understanding your coverage limits is essential. It’s important to know how much of your property and liability insurance is covered in the event the unexpected happens. The last thing you want is to be left with a large bill while trying to get back on your feet after an accident or natural disaster.

 

Bought new equipment or expanded? Ensure that all your commercial assets are listed and covered by insurance
Making sure your commercial insurance policy is up-to-date is an important but often overlooked part of running a business. If you’ve added new activities since the last time you reviewed, or if you’ve made investments in equipment, those need to be taken into account when reviewing your policy; otherwise, you may be leaving yourself open to liabilities and financial losses in the event that something unexpected happens. Staying on top of this can save you a lot of hassle down the line — so make sure it’s part of your regular review process.

 

Lock in a three-year rate
A three-year policy might be a great fit once you’ve done a full review. This type of policy gives business clients stabilization and budgetary control over the insurance line item. While the premium may increase or decrease with changes to existing exposures such as increasing sales or revised building valuations, the rate itself won’t change for their property, general liability, crime and inland marine insurance.

Business owners know it’s important  to protect their investments with the right insurance coverage. When it comes to properly safeguarding company assets, commercial insurance should be at the top of the list.

 

 

Now that you’ve learned some essential insights about managing your commercial insurance effectively, let’s put your knowledge to the test! Take the quiz below to see how well you understand the key concepts discussed.

 

Why is it recommended to review your commercial insurance policies annually, and what potential benefits can a business owner gain from such a review?*

To ensure you’re always paying the highest premium.

To keep insurance companies updated on your personal life.

To make sure your coverage is up-to-date and identify potential savings.

To increase the complexity of the insurance process.

What are some key factors to consider when evaluating the need for commercial insurance coverage, especially in terms of assessing new risks and changes in business activities or assets?*

What are some key factors to consider when evaluating the need for commercial insurance coverage, especially in terms of assessing new risks and changes in business activities or assets?*

Never consider new risks; they are irrelevant to insurance.

Ignore changes in business activities; they don’t affect insurance coverage.

Evaluate possible risks, update coverage for new activities, and include changes in assets.

Only focus on coverage limits without considering new risks.

How can locking in a three-year rate for commercial insurance policies provide stability and budgetary control for business owners, and which types of insurance are typically covered by such a policy?*

How can locking in a three-year rate for commercial insurance policies provide stability and budgetary control for business owners, and which types of insurance are typically covered by such a policy?*

Locking in a three-year rate guarantees that insurance premiums will never change, covering all types of insurance.

It allows business owners to budget for insurance costs, and it typically covers property, general liability, crime, and inland marine insurance.

Three-year rates are only available for new businesses and do not cover any insurance types.

It ensures insurance premiums remain unpredictable, offering no budgetary control.

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