An annual physical examination by a medical professional not only gives us an opportunity to have an open conversation regarding our current health, it is also a chance to discuss necessary lifestyle changes to improve it in the coming year.
Now, apply this same principle to your business. When was the last time you sat face-to-face with your insurance provider for a “checkup” of your business insurance and risk management programs?
Get an insurance “physical”
As your business changes and grows, so do your business insurance needs. An annual review with your insurance professional is recommended to discuss changes since your last renewal. For example:
- Have you purchased or sold buildings, personal property, or vehicles?
- Have you experienced fluctuations in payroll or sales receipts as business conditions change?
- Have you undertaken any new operations or developed new products or services?
- Are there any new legal or regulatory issues affecting your business?
- Do you have a key employee who would be difficult to replace?
Federated’s marketing representatives use a review process called an Annual Client ReviewSM. This yearly conversation helps ensure that the protection you purchased last year is still adequate today, and is an opportunity to consider, for example, whether your policy limits are adequate. It also gives you and your insurance representative a chance to discuss insured and self-insured exposures, and any new or evolving exposures that can impact your current insurance program, like data compromise or cyber threats.
An annual insurance review also can help you assess the services provided by your current insurance carrier. Are claims paid according to your expectations? Is the insurer still financially sound and stable? Are you receiving the level of policy service and proactive loss prevention support you want?
Your risk management program also deserves a thorough exam
In addition to reviewing your insurance program, you should also expect your insurance professional to provide a thorough examination of your current risk management strategies.
A risk management review can help identify new exposures or operations that should be addressed. Gauging the effectiveness of your current risk management plans and analyzing past claims experience will help you focus on preventive measures that can have the greatest benefit for your bottom line.
An annual risk management review may also:
- Help protect the future insurability of your business through loss control and fewer claims
- Help reduce insurance premiums
- Help manage the hidden costs associated with claims
- Create a more favorable work environment, which can help attract and retain high-quality employees
Regular reviews with your insurance provider are important for both your bottom line and for maintaining the health of your business, and can provide some peace of mind for the year ahead.