There are a number of factors that go into creating a solid business insurance plan. One critically important element is the performance of your insurance agent.
You should be visiting with your agent on at least an annual basis. If you are not meeting for at least annual reviews, then you are probably not a valued client that they believe deserves their time and attention.
All of your insurance claims should have been paid promptly, and your agent has walked you through the exclusions. A good agent will not only add the right coverage but will also help you understand the exclusions that apply and the risks you are taking to ensure there are no surprises.
Your agent regularly reviews the valuations for your buildings and completes a reconstruction estimate on those buildings. This is very important. If your buildings are not properly insured to value it can cost you tens of thousands of dollars in unpaid claims.
Your agent should walk through your facility with you to help evaluate values for furnishings, machinery, equipment, inventory, and other property. Again, this is a critical piece of the insurance equation that requires proper Insurance-to-Value.
Your agent should have you review and sign an annual Statement of Values. This is important since this is a declaration of which buildings are insured and which are not. If a building is not included on the Statement of Values, there is no coverage for that building or its contents.
You should have Blanket Property Insurance. This involves moving from a specified insurance limit for each building to a blanket or pooled amount of property insurance to be used how you need it at your discretion.
Regarding business vehicles, your agent has assessed vehicle titling prior to initially placing your insurance and regularly asks when additional vehicles are added. Note that you may have no coverage if a vehicle is titled to you individually but insured by your business.
Your agent should routinely review building leases and contract leases. Not knowing who has the responsibility to insure what, how and up to what limits can leave you perilously in the dark.
Complete business income worksheets with your agent regularly. This will help you to withstand a loss that impacts your income by having proper verification of your income needs. This is a critical step to help protect you when you are most vulnerable.
Lastly, you and your agent should review your business shareholders’ agreement and implement proper protections.