Brian S. Smith, a commercial risk management consultant with the McCart Group in greater Atlanta and an InsuranceEdge adviser to American Express OPEN, shared a nine-point checklist with the Journal of Accountancy that small business owners can follow when it comes time to renew their business coverage.
“Following these tips and taking the time each year to assess insurance coverage, rather than simply renewing it automatically, will help to keep it aligned with business needs,” Smith wrote.
The nine points on Smith’s checklist are:
- Ask your insurance agent about insurance markets and how they affect your premiums and coverage.
- Weigh insurance needs and premiums against periodic changes in operation and inventory.
- Look for a policy that includes “cyber liability.”
- Consider risk exposure to electronic business interruption.
- Evaluate the business’s responsibility to insure property leased to it.
- Assess the value of office improvements and construction (“betterments and improvements”).
- Review general coverage exclusions.
- Check any coverage exclusions for vacated buildings.
- Consider the replacement value of all business machines and operating equipment.
To read the complete Journal of Accountancy article, click here.