When Was Your Last Independent Business Insurance Review?
Date Posted: October 2, 2019
Posted In: Ideas,
From Brown Smith Wallace: Business owners, CEOs and CFOs have enough on their plates – being experts about their business insurance policy is rarely at the top of their list. Coverage often goes unchallenged and unexamined for years until something prompts a closer look. That could include being asked about the business’ coverage by a board of directors; undergoing a large business change that requires different coverage; or, unfortunately, disaster striking and learning there isn’t adequate coverage.
A business should undergo an insurance review every three to five years to stay up to date with current pricing and coverage options. Large companies hire risk managers to work on this full time, but a medium-sized or small business usually does not need or cannot afford this full-time function. But that doesn’t mean the business should miss out on the risk management process.
An independent risk manager can help a CFO, controller or accounting department uncover potential areas for insurance savings. An independent insurance review will identify areas where the insured can reap immediate savings. Independent advice means the consultant does not sell insurance, so a business receives objective advice about necessary coverage and appropriate cost.
Factors business owners often overlook when purchasing insurance
Even if a company takes the time to secure competitive bids for their insurance – and most do – there are often hidden costs that business owners might not recognize.