business insurance

How to Renew Business Insurance: A Complete Guide

By January 29, 2021 No Comments

How to Renew Business Insurance

Investing in SME business insurance policies isn’t a done-and-forget task. After 12 months – which is a standard period – you would have to renew those policies. And this renewal process can be just as daunting as buying new business insurance. So many things to consider, so many steps to take in preparation, and so many surprises that you might discover… (Did you know the same insurance coverage might cost you a bit more in your next renewal?)

So, if it’s time to renew your business insurance, this guide is for you!

Follow these 7 business insurance renew tips and get an effortless experience:

1) Don’t push it to the last date

How hard could it be? You visit your insurer, ask them to renew the policies, and get it done quickly. Right? In reality, the process is more complex. For instance, the insurance company will re-analyze your risk exposures and then determine your new coverage premium. If you aren’t adequately prepared, this “risk exposures” could be high and can significantly increase your cost. There are business owners who start their preparation for the renewal of their business policy as early as 6-9 months. Follow their suit. Start preparing at least three months early.

2) Learn from the previous mistakes

This is if you did make any mistakes in the first place, which is quite common for the first-time business insurance buyers. Did you underestimate your risks? Did you overspend? Were you not clear about the scope of the coverage? Were you not aware of the exclusions when you made the decision? Whatever little or big mistakes you made the first time when buying business insurance, learn from them and don’t repeat.

3) Assess your existing (and newer) needs

Many businesses, during insurance renewal, tend to go with the same coverage, and this is a mistake. From the time you purchased the business insurance (or last renewed it), a lot has changed. Your business has gone through several ups and downs. This is especially true today when the world is struggling with an economic crisis and pandemic-induced challenges. So, you don’t want to blindly follow the same path. Your business has newer needs, requirements and risk exposures. You need to review and assess them; thereon, you must incorporate them in your insurance renewal decision-making.

4) Find cost-saving opportunities-

This doesn’t mean you choose the cheapest business insurance plan. This also doesn’t mean you compromise on your coverage. When buying or renewing business insurance policies, there are small cost-saving opportunities that can help you save a significant sum. For example, if you can convince your insurer that your risk exposure is less, your premium amount can be low. How? This is where tip #5 comes into play.

5) Have licensed insurance brokers to advocate for you

Unless you have extensive experience of buying and renewing insurance policies, it’s usually a good idea to have someone by your side who have that kind of experience. Licensed insurance brokers will not only assist you in choosing the right renewal plans but they will even advocate for you in front of the insurance companies, which can subsequently unlock you cost-saving opportunities. So, connect with a right online insurance broker and get their help.

6) Do you need to buy an extension?

This is if your needs and requirements have expanded and your business demands wider coverage – and foolproof protection against liabilities. If this is indeed the case, we have covered this in detail in a separate post.

Please check out: Shopping for Business Insurance Coverage Extensions: 4 Tips

7) Is it time to change your business insurance provider?

This can be a difficult decision. And more than that, it could be a complex process. But then if your existing insurance company isn’t meeting your needs and expectations, you should definitely consider shifting to another insurance carrier. Their slow services, higher price, outdated terms, and regular conflicts with you are just some of the signs that it’s time to find someone better. If this is indeed the case, an insurance broker can help you with this entire migration process, ensuring higher efficiency and financial leakages for your business.

These are 7 tips to help you have an effortless experience when renew your business insurance policies.

Yes, this renewal process can be tedious and complex with too many loose ends. But it doesn’t have to be like that. Not at least if you’re following the right practices and have a well-defined approach. Having a licensed insurance broker who specializes in SME business insurance policies can make things much easier and cost-effective.

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