Small Business Budgeting, Insurance Renewal Checklist

Business insurance is designed to protect you against unexpected and unmanageable losses, but it can’t do that if you don’t keep your policies up to date. Although the laws and regulations regarding insurance coverage are many, and at times can be confusing, it’s important to make sure your policy is up to date at least once a year.

Small Business Budgeting, Insurance Renewal Checklist

The following questions will help you know what information to collect before renewing your policy.

  1. Type of Business – Has the type of business you do changed since you started? If you’ve grown your business to include a new industry, or have taken on a partner, you may not have sufficient coverage.
  2. Property – Has your business acquired new property? If you’ve recently bought a building, or purchased new equipment then your needs for coverage may have changed.
  3. Vacant Buildings – Do you rent or own a building that’s vacant? Insurance policies are notorious for removing vacant buildings from coverage.
  4. Number of Employees – Have you hired new employees? Often times small business owners turned employers aren’t aware of the insurance needs regarding employees.
  5. Multiple Locations – Has your business expanded to include multiple locations? While some policies cover multiple locations, some don’t. If yours doesn’t you’ll need to add a second policy to cover the second location. Don’t be surprised if the policy premiums are different, since the risks at each location will be different.
  6. Cyber Liability – Has your business gone online or begun storing customer information? If so you may be more liable then you realize. Businesses that depend on the internet or other electronic means for collecting revenue should insure against electronic data interruption.

Owning your own business can be one of the most rewarding experiences of your life, but with the reward, comes risk. Checking your insurance policy before it’s renewed is one of the best ways to guarantee you’re covered against the myriad of risks associated with owning a business.

About The Guest Author: Kevin Kerridge is the Director of small business insurance at Hiscox, a global insurance company with 100+ years of experience.

Checklist Photo via Shutterstock

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