By the end of each year, you need to reconsider your previous business coverage options before you renew your insurance.
Moreover, a business insurance doesn’t automatically get renewed like your auto or life insurance.
Instead, you will receive one or two months notice from your broker for renewal of your business insurance policy. Take this time to understand how your business has grown and compare different policies before you renew.
In fact, renewal is a great opportunity to reconsider your insurance policies and coverage options.
If you are unsure of what things to consider about the changes in your business, we are here to help.
6 Questions to Ask Yourself When Renewing Your Business Insurance
1. Have you moved your business setup to another location?
If you have moved your workspace to another province or location, you must inform your insurance broker instead of waiting for the renewal. If you have moved to a safer, smaller building, your premiums can decrease. If there is a vacant neighborhood, it can be a major insurance risk. Therefore, you must let your small business insurance broker know.
2. Have you renovated or extended your business setup?
After you extend or renovate your commercial business property, you must re-examine your existing general liability coverage options. As in case of fire or unforeseen circumstances, your basic building will only be covered if you don’t renew the coverage options.
3. Have you improved the security system or facilities of your business?
If you have installed security equipment such as surveillance cameras, alarm systems etc. to your building, you may get a discount on your premiums. Moreover, think of the new machinery or equipment you have bought to replace older ones. When you renew your business insurance, you need to sign up for the insurance of new equipment to protect it against breakdown or other mishaps.
4. Are you generating higher or lower revenue than last year?
If your business is booming and you are making higher profits than before, you must let your broker know. As your annual revenue has increased, your existing ‘loss of income coverage’ option may not be sufficient. Even if your net revenue has dropped, share it with the broker to revise or reconsider your existing insurance policies.
5. How do you operate during peak seasons?
If you hold greater stock during the holidays or peak seasons and minimal stock at other times, let your broker know. The variation in your inventory needs to be covered accordingly.
6. Have you moved your business online?
In the post-COVID era, most businesses have moved online. If you are one of them, you need to consider getting additional commercial automobile group insurance for online delivery. If you have built inventories in different places, you need to get extra business property insurance to protect your business assets.
What Other Factors to Consider When Renewing Your Business Insurance?
If you are renewing your medium or small business insurance in Canada, some of the following factors you must consider to revise your policies:
- Any changes to the products or services you offer?
- Any new contracts or leases you signed up for?
- Revised business strategy plan for upcoming year. Are you planning to revise your business strategy?
- Have you invested in some latest business technology?
- Have you moved to a home-based business?
All in all, it’s important to keep your trusted broker within the loop when you make changes to your business. Be it small or huge changes, your insurance provider will help you find the best business insurance policies according to your business needs.
Final Verdict
The biggest benefit of having business insurance renewal is to not be underinsured or over-insured before you have to make a claim. With a transparent insurance broker backing your coverage options, you can get the best advice and quality options.
We at Choice Insurance are committed to providing transparent costs and policies to keep you informed. Get a FREE Commercial Business Insurance Quote today!
