What Should I Expect When My Policy is Due to Renew?
Your policy end date is coming up, what should you do?
There will always be a start date and an end date to your commercial insurance policies, and it is more than likely that term will be one year. After this one-year period, you will need to renew your policy to have uninterrupted coverage. But what is the best and most practical way of going about the process in order to keep costs down and ensure you are getting the best coverage for your business? Below we pose a set of questions and steps that should facilitate a smooth renewal process.
Step 1: Review the coverages of your current policy
What coverages and limit amounts did your current policy have? Were they enough? Or do you feel you might be over insured? Do you feel you potentially outgrew your current policy and you need to add more coverages? These are all valid questions to consider as you enter your renewal process. You should always review what coverages you had last year and make sure you did not pay for anything you feel you did not really need to safeguard your operations.
Step 2: Have your operations or insurance requirements changed since last year?
Companies can grow or downsize throughout a year’s time and their insurance requirements should be reviewed and adjusted for the upcoming year based on those changes. Are you planning on taking on new projects that have new requirements in the coming year? Have you stopped working for organizations or companies that had high coverage requirements? Have you expanded your services and operations? Do you plan to make any major changes in operations in the new term? These are all things you want to consider when starting this new policy.
Step 3: What rate will your current carrier offer this year?
A key question you should ask yourself; do you feel the rate you paid with your current carrier works for you? If so, will they offer the same rate again this year? Sometimes if you feel comfortable with your current rate and carrier, staying with them for the new term and renewing the same policy can be the easiest thing to do. Be mindful of your current carrier’s renewal process as some carriers offer automatic renewals and the pricing terms might differ from that of your current term.
Step 4: Is it worth shopping around for new insurance?
What if you weren't happy last year? What if you didn’t like the rate you paid and didn't feel supported by your carrier or your broker? What if you feel like there are better options out there for your business? Then it is time for you to make a change! There are a ton of great brokers who can help you with your insurance and numerous carriers who would want to work with you. Start by doing your own research online to find someone who will take care of you and your business the way you deserve. Something else to keep in mind is to start your search for a new broker well before your renewal date, that way if you do not find a better option you can stay with your current broker/carrier and avoid a lapse in coverage.
If you can consider these steps when renewing, you should be able to navigate the renewal process with ease.
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