The Benefits of an Insurance Review for Commercial Insurance

Business owners often overlook a critical component of protecting their business by failing to have regular reviews of commercial insurance coverage. Since there is no cost to conduct an insurance review, all businesses benefit from making a regular insurance review a part of their long-term strategy for success. By working with your agent at Wasatch Preferred, serving Sandy, UT and the surrounding communities, it is possible to determine if any gaps exist in commercial insurance coverage that leaves a business exposed to risks that should be avoided.

An Insurance Review is an Annual Checkup for a Business

In a similar way that a person should see a doctor for an annual checkup, business owners should talk with their insurance agent to make sure commercial insurance is adequate.

Here are some items to consider and discuss:

  • Material Changes in the Business Operations: Examples in this category include changes in the product line or services offered. Increases or decreases in employees. Plans to open or close locations.
  • Changes for the Business Owner(s): This category includes adding new owners, owners retiring, and owners getting married or divorced. Small businesses benefit by having key person life insurance as part of their overall commercial insurance needs. This type of insurance protects the business if it depends heavily on the participation of one or a few key persons. It helps the business continue if a key person can no longer work for the business because of death or a permanent disability.
  • Changes in Equipment and Commercial Property: Reductions and additions of valuable equipment used for a business may change the commercial insurance needs. Adding or retiring commercial vehicles does the same. Also, renovations of commercial property need to be considered.
  • Look for Gaps in Coverage: Gaps are uninsured or under-insured things. Imagine worst-case scenarios and how commercial insurance would mitigate the risks. Be especially wary if there are big gaps in coverage, combined with large potential risk. A catastrophic occurrence in these areas can destroy a business that is not insured properly.

Material Changes Require a Commercial Insurance Review

Besides having a regular annual checkup with a commercial insurance review, if there are any material changes that occur during a specific year, it is a good idea to have an insurance review right away. For material changes, do not wait for the regularly scheduled review at the end of the year.

Contact your agent at Wasatch Preferred in Sandy, UT for a commercial insurance review to make sure you have adequate coverage.