Upgrading Liability Insurance – Take a Look at Last Years’ Claims
Every year, plan a meeting with your business insurance agent. Discuss the types of risks your company faces, their changes, and any claims. Then, upgrade your liability insurance. Though not always necessary, an annual review is critical to know what your risks are. And, it gives you confidence knowing you have ample protection in place. Here is what you should consider.
What Claims Did You File in the Previous 12 Months?
Look back over the previous 12 to 18 months. Your business insurance agent can help you with this. Consider any claims filed with your policy. What were they for? Are those risks still present?
In some cases, businesses face claims and losses often. For example, your safety standards may be hard to meet due to the conditions of your environment. Your agent can help you in several ways here.
Identify the Most Common Risks to You so You Can Minimize Them
At the heart of the process is minimizing claims risks. Your agent can discuss with you what claims occurred. Then, you can go back to determine why they happened.
Some common reasons for accidents include:
- Lack of training?
- Not meeting OSHA guidelines
- Poor oversight
- Product failures due to design issues
- Poor maintenance
When you can fix the problem, you should do so. This reduces risks. It also keeps your business insurance costs lower.
Determine If More Coverage Is Necessary
Though it may seem like your goal is to stop the problem from happening, this is not always easy to do.
In some environments, the risks are always present. Customers can always get sick from your food, even when you take precautions. You may always have a slip and fall risks even with policing. In these cases, it is best to consider if you have enough liability insurance.
- How many claims did you have in the last year?
- What was the total amount paid out by the insurance company for those claims?
- What are the current limits to your existing liability insurance plan?
From this information, you can see if there are risks. Remember, if your claims exceed the maximum coverage on your policy, your company has to foot the bill here. And, with lawsuits and settlements a common concern for many businesses, it becomes critical to monitor liability usage.
At any time of the year, you can update your business insurance coverage. This is critical in situations where your coverage may not be enough long term.