While you’ve secured general liability insurance for your business, have you been able to secure the right and proper general liability insurance for the business opportunities you want to pursue? If not, it’s probably costing you profits and growth.
Furthermore, some contracts mandate that bidders carry increased amounts of commercial general liability insurance – but getting that additional coverage can seem complicated or close to impossible in high-risk fields.
We recently sat down with George Gavaris, the owner of Central Insurance Agency (also known as CIA), to discuss the importance of having the right amount of coverage to allow your business to grow to its highest potential. George is a longtime insurance industry expert who has an extensive understanding of the hurdles involved in getting the coverage needed to increase your potential business and positively impact your company’s bottom line.
“For decades, I’ve reviewed thousands of insurance policies that keep businesses from growing because of contract demands. It’s amazing how many millions of dollars in business are lost because of a limiting policy,” says Gavaris.
How does that happen? Here are a few items to address to ensure that your policy is working as hard as it can to support your business.
#1. Is your broker equipped to support your specialty business?
Most general insurance brokers have access to one or two insurance carriers, which limits your options and often leaves you with higher costs. In that instance, a carrier can either flatly refuse to cover your growth potential or hit you with a substantial increase in premium cost. This can leave you with limited growth potential and business stagnation. Working with a broker who is well versed in hard-to-insure or specialty businesses can provide you with access to dozens of insurance carriers nationwide. This gives the broker the ability to combine policies to more precisely meet your insurance needs.
“General insurance brokers may not have the specialized knowledge required to understand the unique risks and needs of certain industries or businesses with specific challenges. This lack of expertise can result in inadequate coverage or higher premiums,” says Gavaris.
#2. Has your broker done a policy review to protect your company and your bottom line?
Some business owners believe that if you’re over-insured, you’re simply paying for a higher level of coverage. That’s simply not true. With an over-insured policy, you’re more likely to pay for general liability coverage with conditions in place that are geared to keep you from using it. A line-by-line insurance policy review will help you understand what your policy covers and where any gaps lie.
“Business needs and risks can change over time. It’s essential to review your insurance coverage periodically to ensure it still meets your needs and then adjust it accordingly,” explains Gavaris.
#3. Does your company have the resources to pursue more bids and RFPs?
Many bids and RFPs require specific amounts of general liability insurance. A customized insurance policy, based on your current needs and your plan for growth, can keep you growing – without breaking the bank.
“Start by thoroughly reviewing your current insurance policy with a specialty broker,” says Garvaris. “Understand what types of coverage you have, the limits, deductibles, and any exclusions. Evaluate your business’s current needs, including industry risks, the value of your assets, revenue, number of employees, and potential liabilities.”
As part of that evaluation, Gavaris also recommends conducting various scenario planning exercises to help you assess how different scenarios could impact your insurance needs and coverage. Consider factors such as expansion into new markets, launching new products or services, or scaling up operations. By taking the time to work with a specialty broker on a thorough evaluation, you will have a comprehensive view of your commercial insurance needs. The ultimate result: a policy that meets your specific needs now and in the future.
Click here to learn more about the no-obligation CIA Policy Review and Assessment: https://ciainsures.com/request-a-policy-review/