Insuring your business against all possible perils is a must of course, but your insurance can quickly get ahead of you if you are not reviewing it periodically. Keeping your business insurance premiums in check is an ongoing procedure and a review can result in some surprising savings. This review should most certainly be done on the anniversary of the policies but may also be warranted if significant changes take place during the year.
A wise businessman will set aside at least one day a year to review his business insurance in Traverse City MI and to assess the need for adjustments.
Here is a simple guide of how to go about this little project:
- Make sure that you maintain a file that is dedicated to your insurances; this file will contain all the policy hard copies and any updates. When all your documents are easily retrieved it is simple to make the review. This file should contain copies of any claims that you have made and blank claims forms as well. The first step to cost reduction is organization.
- Compare the schedules to those assets actually owned: You need to determine if your company still retains ownership of all the vehicles listed on the policy. Many large businesses often find themselves insuring assets that have long since been disposed of.
- Compare the names of your insured employees: It is not hard to imagine that employees come and go, make sure those drivers and key employees that are named on policies actually still work for you. Many employers fail to adjust their named insured in the event they leave the company. If the loss of the employee results in lowering the risk then you can look forward to a premium reduction.
- Repetitive coverage: As businesses change so should the insurance; if for example you decide to outsource product rather than manufacture in house you’re insurance premiums will reflect this. This is also true if you close part of the business and leave parts alone.
- Talk to your insurance professional: There is absolutely nothing wrong with you telling your agent that you want to lower the costs of your business insurance in Traverse City, MI. Your insurance pro will suggest ways that you can go about changing the business so as to reduce the costs. It never hurts to ask for a review of your policies.
When you make an annual review of your business insurances a part of your routine you may be pleasantly surprised that the changes over the last year are positively reflected in your insurance premiums.
