As a business owner, you know it’s important to have the right business insurance. Your business insurance protects your largest asset in the face of natural disasters, liability issues, and more.

Often, we get business insurance and treat it like a set-it-forget-it situation. That’s dangerous. As your business grows and changes, your insurance needs grow and change as well.

As you engage in your end-of-year business planning, don’t forget to look at your business insurance situation.

Do You Have the Right Coverage?

The first step is to review your business insurance coverage. Do you have all the policies you need for your business?

If you’ve added employees in the last year, you might have new insurance needs and challenges. Maybe you bought a company car. Do you have the right auto coverage? Have you increased your liability coverage as your business revenues have improved?

You should also make sure that your policies are doing what they should. Do you have the right disaster insurance for your area? If you live in an area prone to flooding, you might not have the coverage you need in a standard policy. You might need to buy extra insurance to make up the difference.

How Much Does Your Business Insurance Cost?

One of the big issues that business owners face is the cost of insurance. There are costs associated with running a business. The key is to keep them under control. Review your insurance coverage regularly to make sure that you aren’t being charged more than you can handle.

Talk to your insurance agent or broker about discounts for bundling policies. You might also discover that there are discounts for customer loyalty, best practices, and other items. Find out how you can get the best bang for your insurance buck.

Also, don’t be afraid to shop around. Part of your yearly insurance review should be to compare prices elsewhere. If you find a better price, take it to your current agent and give the company the chance to match the price and retain your business. This is one of the best ways to cut your business insurance costs.

Look Ahead

Don’t just review where you’ve been. It’s also important to look ahead to where you are headed next with your business.

Think about the changes you expect in the coming year. Do you think you’ll hire more people? Expand into a new building? What else might change with your business.

As you review your business insurance over the past year, make sure you include the coming year. Your needs might change in the next few months, and that means you likely need to make some tweaks to your insurance. Staying on top of things is important if you want to maintain success as a business owner.

Bottom Line

None of us likes paying insurance premiums. However, insurance is an important part of business finances. If you aren’t careful, a disaster or unexpected event could ruin you.

Take the time each year to review your business insurance coverage, and see what needs to change. Then, take steps to make sure that you are protected.

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I'm Miranda and I'm a freelance financial journalist and money expert. My specialties are investing, small business/entrepreneurship and personal finance. The journey to business success and financial freedom is best undertaken with fellow travelers.

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