Businesses need to conduct a commercial insurance review periodically to ensure the policy is up-to-date with their company’s needs. All businesses evolve over time, and such changes can affect premiums. Here are scenarios in which it’s advantageous to review commercial insurance.
1. Your Business Size Has Changed
Sometimes when a company scales up or down, it’s time to review business insurance. Whether the size of your workforce or revenue changes, you should make sure your insurance policy is appropriate. You may be able to lower premiums when your operation shrinks. While it’s not necessary to notify your insurance agent for every change you make, reviewing your policy from time to time helps keep your books in order.
Many businesses have had to downsize due to the pandemic and related shutdowns. If your establishment has had to cut staff or reduce room capacity, it could mean paying lower insurance costs. You may also get a reduction in your expenses if your company begins to emphasize remote work.
2. Relocation or Change in Services
Another reason to conduct a business insurance review is if your company has made fundamental changes, such as moving to a new address or offering new services. Your insurance company should always be informed about these basic changes, which can affect what you pay. Certain zip codes, for example, have lower insurance rates due to lower crime rates. The lower the risks you face, the better your chances of reducing your premiums.
When you offer a new service such as home delivery, it might add risk to the equation. It’s a good idea to talk with your insurance agent before adding new services to determine how it will affect your rates. As many businesses go more digital as a social distancing solution, it can mean paying less for insurance.
3. New Vehicles and Equipment
Anytime you add new vehicles to your fleet or equipment for your office, it may impact your insurance. Vehicles used for company work must be covered by a commercial auto insurance policy, which differs from a personal policy. Every vehicle you add can potentially increase the risk for the driver and the business. Modifications to vehicles must also be reported to your insurer.
An investment in new equipment may raise company risks such as debt or safety issues, leading to higher rates. Before venturing into new technology, talk with your insurance agent to get a clear idea of how it will affect business risks and insurance.
4. Proactive Steps to Lower Risks
One of the ways to reduce commercial insurance rates is to lower your risks. You can enroll in your insurer’s risk management consulting services to help determine courses of action that lead to a safer workplace. These services include recommendations for making improvements that result in lower rates. By improving the workplace, such as fixing floor problems that cause people to trip, you can cut costs on insurance and minimize accidents.
Taking time for a commercial insurance review with your insurance agent can help cut costs, particularly when you make certain changes to your business. The team at Lou Aggetta Insurance Services can help you to secure reliable commercial insurance to safeguard your organization. Contact us today in Pleasant Hill, California to get started.