The end of the calendar year is a time for reflection, which includes looking back on your business over the several past months. While you’re examining your sales margins and profits, it’s also time to take a look at your insurance policies. Since most of them renew in January, which will be here before you know it, now is a good time to review them with your insurance provider.
Why else should you oversee this task during the fourth quarter of the year? Here are some additional reasons to conduct a business insurance check-up in Q4.
All of the Changes Over the Past Year
Businesses are never static. They don’t earn the same amount of money from quarter to quarter or year to year. They also change constantly; growing and expanding as needed in order to stay relevant and functional. Those changes are normal, but they also need to be properly insured. Examining your insurance in the fourth quarter gives you and your stakeholders a chance to look over the business as well. List out the expansions, new products, new departments, and more, then make sure that you have the right insurance coverage in place for them.
Tax Benefits
Did you know that your business can, in some cases, write off your insurance premiums on your taxes? While you should allow your company’s accountant to manage these details, it’s good to know that any changes made to your insurance plans by the end of the year, and their related premiums, can be used to save money on your business’ tax returns. Getting everything insurance-related finalized by the end of the year allows you to take advantage of this benefit.
Plan Ahead for Next Years’ Business
Every business plans things in advance. If you know that yours will be rolling out a new product line or plan on purchasing a competitor, you’ll need to have the right insurance policies in place. Going over your existing business insurance at the end of the year also provides you with a way to put policies in place for future expansion and additional plans.
Avoid Any Coverage Gaps
The last thing your business needs is a coverage gap. What happens when your policy ends sooner than expected and you need to use it right after it expires? That’s a coverage gap and your business will be out of luck and forced to pay for things out of pocket. Coverage gaps can also pop up when your company expands or executes plans earlier than expected. By reviewing your insurance in Q4, you’ll be able to prevent coverage gaps from forming, ensuring that you have all of the required policies in place when you need them.
Reach Out to Spivey Insurance
Are you ready to examine your company’s insurance policies this quarter to see if and where the gaps lie? Do you have questions about the types of policies that your company may need going forward, based on future plans? If so, please contact Spivey Insurance. Our knowledgeable agents can help you amend your policies for any future plans or growth.