Commercial insurance policies renew on an annual basis. Because a business can undergo significant changes over a year, it is important that insurance coverage change appropriately. Although your insurance agent or broker may be able to help you prepare for your commercial policy renewal, it is good to start thinking ahead of time about the important changes to address.
Important basic information your insurance agent will need to know is if the name of your business has changed or if you have added a new DBA. Other information to update includes your mailing and contact information, the nature of your business and any changes in the legal entity.
Commercial Liability Insurance
To have the proper amount of liability coverage, it is important that quarterly reports be complete and that payroll and sales figures are current. The company’s assets are best protected when its net worth is reflected correctly in the policy, so it is good for a business owner to know this type of information when the commercial insurance policy renews. Additionally, an agent will need to verify if the business has more than one kind of income or operation, and if payroll and sales figures are separated by a different business class.
Commercial Property Insurance
Shortly before your insurance policy renews, ensure the replacement cost of the building is still the same. If you do not verify this, you could find yourself underinsured if there's a disaster. Additionally, commercial property insurance should accurately reflect the value of replacing the contents within the building. Therefore, it is important for a business owner to include the addition of any new computers, furniture or other equipment in the business’ inventory.
Workers’ Compensation Insurance
Business owners can offer employees protection with workers’ compensation insurance that reflects the company accurately. Therefore, it is important to verify that employee payroll is divided into the right class codes, and that the class codes are correct. This is a good time for business owners to check if the business qualifies for drug-free workplace or safety discounts.
Commercial Auto Insurance
To prepare for an insurance renewal, a business owner should check that driver license information for those who operate company vehicles is current and that these employees are qualified to drive these vehicles with the Department of Motor Vehicles. The renewed commercial auto policy should also address changes such as vehicles sold or purchased during the year to avoid overpaying insurance premiums.