There’s a good chance that you don’t even think about renewing your insurance coverage until days before your coverage is about to run out. And you may think: What’s the danger? I end up getting a new policy in place just in time. The fact is, waiting until the last minute could end up costing you more money – and for all the wrong reasons.
We recently sat down with George Gavaris, the owner of Central Insurance Agency (also known as CIA), to discuss the importance of reviewing your policy well before the renewal date. George is a longtime insurance industry expert who has an exceptional understanding of how impactful the wrong coverage can be to your company’s bottom line.
“It’s highly likely that your business has changed over the past year, and your insurance coverage has not changed with it,” Gavaris explained. “As a result, your insurance policy could be harboring hidden costs that are driving up your premium.”
“Regularly reviewing and adjusting your insurance policy can help ensure that your coverage aligns with your evolving business needs,” Gavaris continued. “Otherwise, you could leave your business vulnerable to unnecessary risks, an unfavorable audit, and costly premiums.”
Here are 3 hidden costs that could be increasing your premium:
Hidden Cost #1: Have any aspects of your operations changed over the last year?
Your current business activities are at the core of any commercial policy: Have there been any significant changes in your company’s revenue or business size? Your premium may be higher than it needs to be if you’ve experienced any reductions in your profits or operations. One key area of overpaying: Keeping coverage for any business contracts you no longer hold.
“It’s essential to have an open communication with your insurance broker and seek their guidance when making changes to your business operations,” said Gavaris. “Failure to update your coverage appropriately could leave your business vulnerable to unexpected risks and end up costing you in higher premiums.”
Hidden Cost #2: Does your broker properly categorize your staff?
The risk profiles assigned to your workforce directly impact both your workers’ compensation and liability insurance. You should be in regular communication with your broker regarding your employees’ job responsibilities, tasks, and any changes in roles that may affect their risk classification and, as a result, your premium.
“Communicating accurate information to your broker is key to ensuring that you’re properly covered for the actual risks associated with your payroll levels,” explained Gavaris.
Hidden Cost #3: Does your broker do a line-by-line assessment of your policy to optimize your coverage and savings?
Think about it: When was the last time your broker did a line-by-line review of your policy? CIA believes that the only way to make sure your coverage is right-sized is by doing a thorough assessment of every page in your policy. This detailed process helps optimize your coverage by identifying undue risks, as well as opportunities for savings. Ultimately, the goal is to have your insurance policy align with your current business needs, so the protection you have – and the premium you pay – are exactly what they should be.
“Scheduling regular reviews, either annually or as significant changes in your business occur, helps ensure that your insurance coverage is tailor-made for your business,” said Gavaris. “Otherwise, you could be wasting a lot of money on coverage you simply don’t need.”
Click here to learn more about the no-obligation, line-by-line CIA Policy Review and Assessment: https://ciainsures.com/request-a-policy-review/