National Insurance Awareness Day is June 28. It’s a good reminder to schedule an insurance coverage review to identify liability gaps before you have a claim.

Why are coverage reviews so important?

Adopting a same-as-last-year mindset may not suit your business’s changing needs. What worked a year or even six months ago may not be adequate now. Without a coverage review, you might not know you have new risk liabilities that need insuring.

Businesses are always evolving; they can grow, shrink, merge, pivot and diversify. Change can alter your risk profile. Underinsurance leaves you vulnerable, while overinsurance leads to unnecessary expense. A coverage review lets your insurance agent know more about your business so they can strategize to protect it within your budget.

Rising costs are affecting commercial auto coverage. Costs spiked as high as 20% during 2023, according to Automotive Fleet magazine.

Assets can appreciate or depreciate. Regular coverage reviews ensure your insurance package reflect current values. For example, property valuation is critical for determining your costs to rebuild after a disaster. Your property’s market value is not the same as your cost to rebuild. Often the cost to rebuild far exceeds the market value.

According to the National Centers for Environmental Information’s U.S. Billion-Dollar Weather and Climate Disasters report, 2023 brought 28 billion-dollar weather and climate disasters. The cost amounted to nearly $93 billion. Add inflation to the mix and the prices go even higher.

Extreme weather seasons are lasting longer and creating more damage. Depending on your location, you might be at risk for earthquakes, landslides, floods or mudflows. None of these are covered under standard commercial property policies. You need separate insurance for these risks.

What to expect from a coverage review

Your account manager will walk through some questions about your business operations. Changes to your North American Industry Classification System code, employee count and payroll affect your workers’ compensation needs. And expanding your business can open you to employer liability that general liability doesn’t cover.

You might have added risk exposure if you made property improvements, added drivers or added delivery services. And cyber liability is always an issue that needs to be insured. If you have multiple properties, you might want to invest in blanket coverage to cover each property under one policy. An umbrella policy could be a good fit if you want to increase your coverage across multiple policies, like auto, property and defamation liability.

When you meet with your insurance agent for a coverage review, they’ll:

• Ask questions about your business operations to assess your risk exposure
• Shop around to get the best rates for your unique needs
• Examine and compare the fine print for you
• Explain the policy to you and make sure you understand what it covers
• Advise you on risk liability gaps created by policy exclusions
• Solve the liability gaps by presenting you with supplemental insurance options
• Check on qualifying savings for fleet telematics, security systems, employee training and safety programs
• Answer any questions you have

Call your Rathbun Insurance account manager for a coverage review. You’ll have peace of mind knowing your business is protected.