The Importance of Reviewing and Updating Your Liability Insurance Policy Annually

Changes in the value of your assets and possessions warrant a policy review, especially for items like furniture and electronics. Additionally, losing a valuable heirloom or acquiring a new vehicle may require an update.

Life events like a marriage, divorce, or childbirth can also trigger substantial changes to your coverage needs. Even things like adding or removing beneficiaries are essential to review.

Property Coverage

Property coverage, usually found in the home and auto insurance policies, is essential because it protects your belongings from damage or loss. But, as time passes, your property value can change, and your needs may shift, so you need to review and update this policy at least once a year.

A yearly review can help ensure your policy correctly aligns with changing life circumstances. Identify any gaps in coverage you’d like to fill with a supplemental or additional policy. Many situations warrant a policy review, including experiencing a “qualifying event,” such as getting married, buying a new car, having children or sending them to college, moving, remodeling your home, or even starting a business.

Another reason to review your property coverage is if you’ve added any new features to your home or business, such as adding a security system or replacing an appliance. Changing these features can also affect your property value and necessitate an adjustment in your coverage.

Liability Coverage

Insurance is necessary for running a business, as it can protect you from a financial disaster in an accident or tragedy. However, it is not a set-it-and-forget-it type of investment, so reviewing your policies is essential.

Significant life changes can merit an insurance review, including getting married or divorced (and changing the beneficiaries on your life insurance policy), buying a new car or home (and updating the insurance coverage on those items), or having children. Additionally, professional changes are a reason to reexamine your business policies, such as introducing new services or products. This may mean expanding your liability insurance Newark DE or taking on more risk, which your insurance needs to reflect. An annual insurance review can also uncover opportunities to save money on your policy by catering your coverage to your specific situation. This keeps your costs down and your assets, property, and family protected.

Business Owners Policy (BOP)

Many small businesses find a business owners policy (BOP) an affordable way to bundle property and liability coverage into one package. A BOP typically includes commercial property insurance to protect against the cost of repairing or replacing commercial property and business interruption insurance to cover lost income in the event of an insured incident.

The liability portion of a BOP will protect your business from lawsuits related to bodily injury or property damage caused by your business activities or services. It also covers legal fees and damages resulting from errors or omissions committed by your business. Depending on the type of business and its needs, other optional coverage components can be added to the BOP, such as crime, spoilage of merchandise, vehicle coverage, and forgery.

Larger companies usually don’t qualify for a BOP and instead must purchase various individual policies tailored to their specific risk profile. Contact us if your company wants to see if a BOP can meet its property and liability insurance needs.

Commercial Auto Coverage

Commercial auto coverage provides liability and physical damage protection for owned, leased, or hired vehicles. This includes cars, trucks, and vans used for business purposes.

Some factors that can affect the cost of commercial auto coverage include:

The more business-related car accidents a company has, the higher its risk, which will often increase insurance premiums. Vehicle age and type: Newer, more expensive vehicles will generally be more expensive to insure than older, cheaper ones. Vehicle load: The number of supplies or tools you routinely haul will also impact your rates. Deductible: The higher your deductible, the lower your commercial auto premium.

Business owners should review and update their policies annually. This will help them streamline their policies, reduce insurance costs, and prevent gaps in coverage. Talk to our experienced team of professionals for more information or a quote on your commercial insurance needs. You can contact us online or in person at one of our offices.

Peter Brown

Peter Brown

Peter is a business owner, technology writer, and enthusiast. He enjoys writing about the automotive lifestyle and all things related to automobiles and technology. In addition to his work as a journalist, Peter also teaches automobile maintenance classes in his spare time. Though he loves writing about new products, features, and trends in the automotive world, he believes that one of the best ways to learn is by doing – so he encourages readers to read his articles.

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