If someone asked you today, right this minute, if your insurance coverage is exactly what you need, what would you say? Chances are, even if the answer is “Yes,” you’d hesitate. That’s no surprise, really. Many specialty businesses, like yours, have the same reaction.
Given the unique aspects of your business, your insurance needs are quite different than those covered by a standard policy. Those differences need to be addressed by your broker, and your policy should be regularly reviewed to ensure that they are being met and that you’re not overpaying or being under-insured.
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 for the unique needs of a specialty business. George is a longtime insurance industry expert who has an extensive understanding of the risks a company faces and how impactful the right coverage can be to a company’s bottom line.
“Like any business, your needs and risks change over time. Any changes to your business could leave you more vulnerable to risk and paying higher premiums than you need to,” says Gavaris.
To have a better understanding of what your policy should contain, check out the 3 key questions the CIA Team will regularly ask during a CIA Line-by-Line Policy Review:
1. Are you overpaying for your coverage?
Ironically, you may have too much coverage where it’s not needed and gaps in coverage that are leaving you open to risk. For example, does your policy account for factors such as the value of your assets, your number of employees, and any potential liabilities?
“Ensure that the coverage limits in your policy are appropriate for your business needs. You don’t want to be underinsured, but you also don’t want to pay for coverage you don’t need,” says Gavaris.
2. Are the right people insured at the right level?
One size does not fit all here. Certain employees may be considered low risk, while others are deemed high risk, depending on the nature of the work they do. Does your insurance properly differentiate the various roles of your employees? If not, you could be paying more than you need to.
“Make sure that you understand how your insurance premiums are determined, which is based on the classification of your employees. Different roles have different risk profiles, which affect insurance rates,” explains Gavaris. “Request a classification audit from your insurance provider. This involves a review of the job duties of all your employees to ensure that they align with the classifications used for insurance rating purposes.”
3. Is your coverage keeping you from pursuing certain types of business?
Your insurance coverage shouldn’t be stopping you from going after the work you want to do. After all, you’re in business to make money, right? Even small adjustments to your policy’s language can help to properly support your company’s growth.
“For example, if your liability coverage limit is insufficient, it could hinder pursuing high-value contracts due to the risk exposure. Consider such factors as an expansion into new markets, launching new products or services, or scaling up operations when reviewing your policy with your broker,” explains Gavaris. “Then you’ll be properly positioned for growth.”
Click here to learn more about the no-obligation, line-by-line CIA Policy Review and Assessment: https://ciainsures.com/request-a-policy-review