New Year, New Needs, New Insurance

New Year, New Needs, New Insurance

2020 has brought unprecedented change across the board. From workers now operating from kitchen tables and board meetings taking place via a video camera, businesses have needed to adjust rapidly to an everchanging world. With 2021 on the horizon, it’s time to see what changes you’ll need to make for the New Year. One item that may not be on your list, but should be, is your business insurance plan.

Now is the time to reevaluate your insurance needs and look for ways to lower costs while keeping the same – or even potentially better – benefits. If you don’t know where to start, we have four actions you can take now ahead of 2021:

  1. Evaluate your insurance needs. Let’s face it, your business most likely looks very different now than it did 365 days ago. You’re not alone – businesses across the globe have made deep cuts to their staff, changed the way they do business and redefined what the word “office” means. With rising group benefits expected in 2021, it’s integral to see what type of coverage you and your employees truly need right now. If your employees are not using company cars or driving as much, you can adjust your auto insurance policies. If more of your staff is working from home instead of within the physical office, look into what property and liability insurance you need. Don’t be afraid to ask for help in figuring this out – you can take a look at our tool kit, which can help you see where you’re paying too much and what you can do without in the New Year.
  2. Revisit your policy. It’s a simple step, but one that often gets pushed to the wayside due to not wanting to read through monotonous insurance lingo. By revisiting your policy now, you can potentially get a head start on savings and increasing your cash flow for the New Year. How? Use this time wisely and instead of rushing to make a decision when renewal time comes, you can evaluate all your choices, skillfully think through what is necessary and make a thoughtful decision for your business.
  3. Request an adjustment immediately. Even if you’re unsure about changing your policy, it’s prudent to go ahead and request an adjustment now. If your business has made any major changes or experienced a decrease in sales, these reductions were not reflected when previous coverage projections were made. Payroll or sales rating basis (workers’ compensation, liability, pollution, etc.) should be adjusted now so you do not pay for additional unnecessary insurance costs. Some of these can even be backdated to save you even more money.
  4. Reach out for help. Insurance policy language can be convoluted, dense and overall, just confusing to understand. Add to that agents who are typically not transparent with their clients on how they get paid or the incentives they receive to only work with certain insurance carriers – helping their wallets, but limiting their ability to get you the best rates possible. Reach out to a third-party advocate who can help you compare rates from a wide range of different carriers, break down the insurance jargon and empower you to make smart business insurance decisions.

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