Business Insurance Annual Review Checklist
Because you probably wear many hats each day, you may not be thinking about how changes to your business can impact the type and amount of insurance coverage needed to protect it.
It’s a good idea to review your insurance needs annually. Here is a checklist that will help to identify whether your existing business insurance coverage is appropriate or if changes are necessary:
- Has the name of your business changed?
- Have you restructured your company’s ownership (e.g., gone from sole proprietorship to LLC or corporation) or added any DBA’s (doing business as)?
- Has your business changed owners, partners or officers?
- Has the nature of your business operations changed? For example:
- Do you now also service the products you manufacture?
- Have you changed or expanded the types of products you sell and/or services you offer?
- Have you added new locations, expanded into new states or outside of the United States?
- Have you closed or moved any locations?
- Has the mailing address of your business changed?
- Has the physical location of your business changed?
- Do you own the building your business is located in? If yes …
- Have you taken any steps to protect your building? This includes the installation of alarm or security systems, fire suppression systems and/or surveillance equipment.
- Has it been longer than 12 months since you reviewed what it would cost to replace your building?
- Has it been longer than 12 months since you reviewed the amount of insurance provided for your business personal property? Keep in mind that inflation can impact the value of business personal property.
- Have you entered into any new purchase or lease agreements for your business property?
- Has there been any increase/decrease in your company’s payroll or sales?
- Have you entered into any new customer contracts?
- Has there been any increase/decrease in your company’s payroll? This information is necessary because the price you pay for workers’ comp is based, in part, on annual gross payroll.
- In the past 12 months, has your employee headcount increased or decreased?
- Do you have employees who work from home on a regular basis?
- Do you use subcontractors, volunteers or interns?
- Do you travel to other states or foreign countries?
- Have you added or eliminated vehicles used in your business operations?
- Has the usage of vehicles covered by your policy changed (e.g., distance they are traveling or what they’re used for)?
- Do you use your personal vehicle for business, allow employees to use your personal vehicle for business or allow employees to use their own personal vehicles for your business?
- Has it been longer than 12 months since you reviewed the limits of liability and deductibles provided by your policy?
- Are there any new drivers of your business vehicles?