How Often Should Businesses Review Their Insurance Coverage?

Insurance Coverage Review

An insurance review is a great opportunity for businesses to determine whether their policy meets current needs or if the level of coverage requires an adjustment. Businesses evolve over time: Revenue, inventory, and many other factors change and therefore it is important to review your client’s business insurance at least once a year.

Expanding or Downsizing

One example of when it is beneficial to check in with coverage needs is during expanding or downsizing. Those moving to a smaller office most likely do not need as large of a policy as they once did. Likewise, a larger space or an increase in staff will require more coverage. A review will help evaluate risk level for the current organization size.

New Equipment or New Employees

If there has been an addition in equipment or employees, an insurance review should be in order. Anytime there is something extra to protect, it is time for your clients to discuss their new investment with you.

An example of this is purchasing new commercial vehicles or adding employee drivers. Without proper protection, there will be serious consequences and you may have to deny a claim if there was an accident.

The Annual Review

Even without any major changes, your clients should review their business insurance annually to ensure they are still getting the right coverage for their needs. Guide your client to understand what it takes for them to be fully protected for their specific level of risk.

Business insurance is a mandatory coverage with the level of coverage dependent on many variables. Explain to your client that if they suddenly do not have sufficient coverage when it’s time to file a claim, they could end up needing to spend much more of their profits than they ever imagined-all out of pocket. A business is extremely vulnerable without sufficient risk management, which embodies the protection of all aspects of business, such as liability, commercial vehicles, and even inventory.


What your client could afford last year might have been the minimum level of coverage, however when a business is more financially stable, they may want to increase coverage levels for a greater level of financial protection. Most business owners are invested in the livelihood and safety of their business and will want to do what they can for its success in a time of need. Speak to your clients about the importance of regular insurance coverage reviews. 

About PL Risk

In addition to bringing you the latest news from the insurance industry, PL Risk provides Resources for Agents and Brokers nationwide. We’ve recently implemented Hiscox Now, which allows agents their own access to Hiscox and instant quoting. To learn more about our operations, contact us today at (855) 403-5982.

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