How often does your business go over its insurance policies? Do you just renew them every six months without going over claim limits and other factors? If you answered yes to that last question, then it’s probably time to do a comprehensive insurance review of every policy that your business holds. It’s never a good thing to be caught with a lack of insurance coverage in any circumstance.
The new year is the best time to conduct these insurance reviews. After all, not only is the date easy to remember every year, but it’s a way of looking back at the previous year to take note of everything, including your insurance policies. On top of when, here are a few reasons why you should do this.
The Cost of Everything is Going Up
Inflation makes the price of everything, from items found in the grocery store to the real estate that houses businesses of all types, go up. If your building is suddenly worth twice of what it was the previous year, then you more than likely need to increase your insurance limits. In addition, you need to take into account the costs of repairs or rebuilding, as the prices of raw materials have gone up as well. Rather than go through a fire or windstorm and find out that you don’t have enough coverage to pay for all of the repairs, spend some time at the beginning of the year increasing your policy limits as needed.
Liability Limits May Change
The amount of general or umbrella liability insurance that you have depends on many factors. Some are based on the overall worth of your business; others vary because of government regulations or insurance considerations. No matter the reasons, your liability limits can either go up or go down every year. In order to ensure that you have the maximum amounts available, just in case, it’s crucial to go over your liability policies at the beginning of the year. This goes for both your general liability policy and any umbrella policies that you have in place for any extra protection.
You Could Find Your Business in a Flood Zone
As the weather, particularly windstorms like hurricanes, hits harder every year, your business may find itself moving into a flood zone. The official flood zone maps are updated regularly, showing where the land is most likely to end up underwater. Since your insurance policies most likely only cover flooding that comes from burst or broken pipes, you could be stuck paying for repairs out of pocket if your business floods due to outside forces. Finding your company in a flood zone means that you can get a policy to cover those incidents.
Contact Spivey Insurance
If you need to conduct a comprehensive insurance review of your business’ policies, reach out to Spivey Insurance. Our friendly and knowledgeable agents can help you determine which policies you need and how much coverage is necessary to protect your business and its assets.
