Is Your Business Secure for the New Year?
The beginning of the year offers a great opportunity to evaluate your insurance program. Over the last year, you might have expanded your operations, hired new employees, or made significant purchases. If your coverage has not been updated, a single incident could impact your achievements.
Kick Off With an Annual Coverage Review
Start by identifying changes in your business: new locations, vehicles, products, or major acquisitions. These changes might alter both your risk profile and insurance needs. Contact The Southern Agency to make sure your policies are current and effective before any unexpected events occur. Learn more here.
Examine General Liability and Property Policies
General liability covers claims related to injuries or property damage attributed to your business. Ensure your policy limits correspond with your current revenue, client interactions, and agreements. With property insurance, verify that coverage reflects today’s costs for rebuilding or replacement, taking into account inventory, equipment, and furniture. Also, assess whether your deductible still aligns with your financial situation.
Assess Business Interruption and Extra Expense Coverage
If an unforeseen event such as a fire or storm halts operations, business interruption insurance can compensate for lost income and ongoing expenses. Extra expense coverage helps with temporary relocation or equipment rentals, allowing you to continue serving clients. Evaluate how much income is covered and the duration of benefits. Many businesses underestimate recovery times after major incidents.
Update Workers’ Compensation and Employment Practices
Workers’ compensation, generally mandatory with employees, is linked to payroll and job categories. Adjust your payroll data, employee numbers, and any job function changes, like remote work adaptations. Consider employment practices liability coverage for protection against claims involving unfair termination or workplace issues, especially if HR policies or management structures have evolved.
Enhance Cybersecurity and Data Breach Protections
Cyber threats are increasingly targeting small enterprises. A cyber policy can assist with costs from data breaches, ransomware, or interruptions due to cyberattacks. Review the coverage limits, response services, and the security measures required by the policy. The Southern Agency can guide you through securing your digital assets to prevent costly interruptions.
Verify Certificates, Agreements, and Compliance
Many business agreements mandate specific coverage types and amounts. Review these documents to ensure your policies meet necessary requirements, such as limits or endorsements. Keeping these up-to-date can safeguard important relationships and minimize disputes following a loss.
Plan Your New Year Insurance Assessment
An early-year checkup can expose areas needing attention and present new ways to manage risk. Schedule a meeting with The Southern Agency to explore your insurance needs, examine local coverage options, and set up a plan that reflects your current way of doing business. Contact us today at 800-777-1872 or visit The Southern Agency to get started.
