The closer we get to the end of the year, the more policies are expiring and need renewal. It is time to open that insurance file and check if your company needs to renew business insurance(s).
Every business has multiple policies that protect them against risks and are the ideal safety net when dealing with lawsuits, damages, injuries or cyberattacks. These policies must be revised and renewed yearly to protect your business.
Renewing business insurance in time has several benefits for professionals and companies. If a firm renews its business insurance on the last day, it may not gain these benefits. The article will highlight the top benefits of renewing business insurance now and help protect your business for another year.
Benefits of Renewing Business Insurance in Time
Non-Stop Protection
The main benefit of renewing business insurance is the coverage never stops. The cover will continue from the date the policy ends, so there is no waiting period. The continued cover makes sure that the business is always protected, and the company is prepared for another year.
If the insurance is renewed at the last minute or after the policy ends, delays and processing periods may occur. The business may face a claim during this period and must pay for everything out of their pocket.
Revise Coverage Understanding
It is always great to have insurance in case of industry risks. Businesses need multiple policies to cover most risks. Over time, a company may forget their insurance coverage details, especially if they have been lucky to avoid any claims.
Renewing business insurance reminds companies what their policies cover and the risks they are protected from. The insurance knowledge can be vital in the future when facing threats, small or big.
For example, a burst pipe ruins a few computers in an office, and the company is ready to pay for replacements. If the manager remembers their office insurance policy protects such accidents, they will be reimbursed and recover without financial loss. Hence, revising the policy cover again can return many different payments.
Opportunity To Increase Cover
A lot can happen in a year or a business, such as an increase in employees, new assets, new products, etc. Every time a business grows, so do its risks. Therefore, renewing business insurance is the perfect opportunity to increase coverage on existing policies.
A business may need to increase its coverage for employee compensation insurance, add new assets to the property all-risk policy and increase liability insurance. The increase in coverage may increase the premium, but it will be worth it.
An old policy with limited coverage may not cover risks associated with new assets, products or a larger workforce. Thus, before renewing business insurance, a company must understand what has changed and whether its original policies provide adequate coverage.
Upgrade Risk Management Strategy (New Policies)
When renewing business insurance, it is a great chance to communicate with insurers about increasing risks and new policies. Comminating worries and industry risks can help understand if some uncommon policies or packages can adequately cover risk and the outcome.
There are many policies that companies may not know about and may need. Keeping current with insurance is the ideal risk management strategy for any business. It can help a business protect its company and avoid severe financial loss.
For example, the increase in cyber-attacks has attracted more firms to cyber insurance. It is not a mandatory insurance but a must to avoid the substantial financial loss connected to cyber-attacks. Hence, companies should question insurance experts about the other policies they may benefit from while renewing.
When Your Company Should Be Renewing Business Insurance?
Renewing business insurance on time is vital for companies to cover unforeseen risks and have the best financial protection. The benefits of renewing can help a business understand and get the right policies. But when should you begin to think about renewing?
Most companies should start renewing around 2-3 months before expiring. The process is not as simple as signing a paper; many policies require re-assessing risks and may take long. Every policy is different, and it is better to be safe than sorry.
In addition, renewing beforehand allows insurers to revise the policy accurately to fit your current and possible risks to have the best protection for the upcoming year.
It’s time to check which policies expire in the next few months and call your insurance provider for a secure future.
To learn more about business insurance and renewing your insurance in Hong Kong and Asia, contact Red Asia Insurance.
