Business owners deal with competing priorities on the daily to ensure the safety and success of their enterprise. Whether it’s ensuring customer satisfaction, conducting safety checks, managing employees, or complying with regulations, it’s understandable that preparing for your insurance renewal might not seem like a top priority. We hope to change your mind.
Your insurance can provide critical monetary protection for you and your business in unexpected situations that could otherwise be financially devastating. Your business changes over time, and your business insurance policies should adapt to meet your company’s evolving needs. Automatically renewing existing policies can potentially result in being underinsured or overpaying for unnecessary coverage.
As we are now in a hardened insurance marketplace, carrier capacity for most lines of coverage has decreased, while premiums and underwriting scrutiny have increased. In some cases, insurance companies are pulling out from markets altogether. Because of the hardened market, the renewal process likely requires greater preparation on your behalf, as insurers now require more data from insureds for the underwriting process than in prior years.
As you prepare for renewal, here are some considerations:
4 Months Prior
Depending on the complexity of your insurance profile, at this point in time your advisor might start reaching out to markets to see what the rates for your renewal will look like. If terms for renewal with your existing insurers are unfavorable, your advisor will determine if remarketing to other insurance companies will be necessary. If this is the case, your advisor will likely reach out to you for information regarding changes in your profile.
Regardless of whether or not this is your situation, it’s important to be ready to encounter unexpected delays. Here are items to prepare and gather four months prior to your renewal date:
- Copies of all insurance policies and communications from the last year
- Financial data and information, including a balance sheet and a profit and loss statement
- Loss runs from insurance companies
3 Months Prior
This is a good time to really zero in on the changes that your business has undergone in the past year so you and your advisor can discuss which (if any) adjustments need to be made to your coverage. Your advisor will need enough time to discuss potential changes with underwriters and adhere to their guidelines. Using the information you provide, your advisor can consolidate data and create a meaningful narrative around your risk profile that underwriters will understand. This should translate to more favorable terms for coverage and potentially better pricing. These are things you’ll need to think about and communicate to your advisor three months prior to your renewal (at the latest):
- Property values, locations, and revenue associated with each
- Inventories
- Information regarding capital investments
- Investments in equipment or infrastructure
- Acquiring, recapitalization, or getting rid of assets
- New contracts entered into or potential new contracts
- Gross revenues
- Supply chain data
- Documentation of operating procedures, including safety measures
- Documentation of employee trainings
- Loss records
- Corrective measures you’ve implemented If you’ve experienced losses
- Payroll information
- Changes in number of employees
- Changes to goods and services provided
- Any other significant changes to your business practices
- Situations that give rise to a claim
2 Months Prior
At this point, your advisor should compile the information you’ve provided and send in renewal updates and applications to insurance companies for them to finalize terms for coverage. These are some things you might need to do in the coming weeks:
- Answer questions from insurance companies
- Schedule appointments for loss control visits if insurance companies need them to finalize terms
1 Month Prior
Congratulations! You’ve almost made it across the finish line. As you count down the days to finalize your renewal, ideally, you shouldn’t have much left to do besides communicate with your advisor. Your advisor should be able to present you with the terms for coverage for the upcoming year. Be sure to do the following:
- Ensure that the proposal covers your needs
- Address any discrepancies that may arise
———–
While insurance renewals may seem like a time-consuming task, it’s crucial to remember that in the unfortunate event of a disaster, your efforts in collaborating with your advisor to secure the right coverage are invaluable.
Reach out to us today to discover how we can work together to protect what matters most.
For more information
We’re ready to help when you are. Get in touch and one of our experienced Baldwin advisors will reach out to have a conversation about your business or individual needs and goals, then make a plan to map your path to the possible.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. The Baldwin Insurance Group Holdings, LLC (“The Baldwin Group”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. The Baldwin Group does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, The Baldwin Group does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.
