Business Insurance Review: What to Ask and When to Update Coverage

A business insurance review is vital to ensuring that any potential losses or liabilities are covered if the worst happens. It is entirely too important to just scan quickly and pay when it comes to renewal time. It’s a good idea to review your business annually without the stress of impending expiration dates. Preparing for this annual review is one of the most important things you can do, as missing a crucial part of your coverage could cost thousands of dollars.

Below are a few questions to ask for your business insurance review so you can save time and a potential future headache.

What do you need to protect?

Many parts of your business may change year after year: property values, equipment, machinery, technology, product lines, personnel, and the list goes on. These changes can all impact the types of insurance you need or the amount of business insurance coverage you need. Consider these categories.

• Premises: Have you remodeled or made any additions? Have you added or taken away equipment that should be reflected in your property coverage? ?
• Business personal property: Have you upgraded your computers, electronic equipment and other equipment that is vital for the functioning of your business? Do you have new office furniture?
• Vehicles: Have there been any changes to your business vehicles or fleet that may affect your commercial auto coverage?
• Loss of income: Would you be covered if property damage forced your business to temporarily close or limit operations (business interruption coverage)?
• Technology and data: Are you covered should your company suffer a cyberattack or breach of data (cyber liability coverage)?

What liabilities should you consider?

Any business runs the risk of lawsuits. It is crucial to review where your company may have potential exposures and ensure you have insurance policies to cover these. It’s important to review potential risks and confirm you have the appropriate insurance policies in place, including general liability insurance, to help protect your business. The following questions can help guide that review:

• Products: Does your company sell, distribute or manufacture goods? You could be sued if you are any part of a chain of distribution.
• Workplace injuries: Is your workers’ compensation adequate for your current employees and operations? ?
• Professional liabilities: Do you have appropriate errors and omissions insurance to cover what is not included in your general liability insurance?
• Catastrophic claims: Do you need an umbrella policy to cover unexpected or high-cost events?

Can you save money on your premiums?

A business insurance review isn’t just about lowering costs; it’s about making sure your coverage is properly aligned with your business today. Reviewing your policies can help identify areas where coverage may be outdated, unnecessary, or no longer a good fit, while also ensuring you are not underinsured in areas that matter most.

There may still be opportunities to reduce premiums, such as qualifying for multiple-policy discounts or taking advantage of new programs. When considering changes, it’s important to look at both your business and personal financial situation. In some cases, choosing higher deductibles may help lower premiums, but only if your business is financially prepared to absorb those costs if a claim occurs.

How often should businesses review and update insurance policies?

As a general rule, businesses should complete a business insurance review at least once a year. An annual review helps ensure your coverage still reflects your current operations, assets, and risk exposure, rather than what your business looked like in the past.

In addition to an annual review, it is important to revisit your insurance anytime your business experiences a significant change. This may include growth or revenue changes, purchasing new equipment or technology, adding vehicles or a new location, or changes in staffing. Even positive changes can create new risks if coverage is not updated accordingly.

Reviewing policies regularly, and before issues arise, helps reduce coverage gaps and ensures your insurance keeps pace with your business.

Small business insurance review considerations

For many small businesses, operations can change quickly while insurance policies remain the same. New equipment, added responsibilities, or small operational shifts can all impact coverage needs over time.

Because even minor updates can affect risk exposure, a small business insurance review is an important way to stay protected. Reviewing coverage proactively allows business owners to address potential gaps before they become costly problems.

Final Thoughts

Time and effort are required for an annual insurance review, but it does not have to be complicated. The agents at Forward Insurance are here to help guide you through the process and ensure nothing is overlooked. As a community-driven financial partner, Forward prioritizes the best interests of local businesses and works alongside you to review coverage, identify opportunities for improvement, and make adjustments as your business evolves. Our mission is simple: to move our communities forward by helping businesses stay protected today and prepared for what comes next.