As prospecting agents, we hear all too often the phrase, “I haven’t heard from my agent in years!”. Going even six months to a full year without touching base with your agent can and oftentimes will lead to coverage gaps in your insurance policy. Think of how your business grows and changes over the span of a year. Maybe you’ve added large and EXPENSIVE equipment to your operations? Maybe you’ve added or removed a product or service offering that changes your risk exposure? Any small or significant change to your business can impact your insurance policy, and if your agent doesn’t know about it… you might not be covered for it! Here are the top conversations you should be having with your agent AT LEAST once a year (though we love catching up more often than that!).
Changes to Business Operations or Workforce
Sometimes life comes at you fast. Let’s say your top worker quits on short-notice. Or maybe you decide to quit offering equipment rental. Or maybe you just can’t haul shingles up a ladder anymore and decide to cut out roofing as a service offering. You might think these changes are small enough to go unnoticed, or you might be meaning to let your agent know but life keeps getting in the way! No matter the change - big or small - your agent should be one of the first calls you make in order to ensure your business and workforce is still protected properly!
The changes we often see, especially coming off the throes of COVID-19, regard payroll figures. If you are rated for 15 workers but had to furlough half of your staff amid the pandemic, you are likely paying much more than necessary for your workers compensation policy. Additionally, making sure your driver list is always up-to-date is crucial because if a new hire gets into an accident in your company vehicle but your insurance company didn’t know they were an exposure, a costly claim could be denied - leaving you to foot the property and medical bills. Or, the claim might be paid initially, but you will be left to deal with an unhappy carrier and painstaking paperwork in its wake! The same rings true for changes in your risk exposure. Remember that example of retiring the roofing offerings? Roofers, among many other construction-related risks, hold a higher priced rate than say.. an office worker. This is because roofers, statistically, are more likely to be injured on the job. If you aren’t updating your agent on changes to these types of exposures, your insurance company is going to assume that you’re still at-risk for harm and you will pay the premiums to reflect it. Additionally, with the uptick in audits that we’re seeing since the beginning of the pandemic, if your business operations are not classified correctly, you’re likely to be “found out” and landed with a lump-sum invoice to be paid upon receipt.
Adding or Removing Large Equipment
As a contractor or rental retailer, you likely need large equipment at your disposal. Often covered under an Inland Marine policy, if your equipment isn’t specifically scheduled with individual serial numbers and cost-new figures listed, it might be harder to claim a payout in the event of a loss. If you are historically slow to update your agent on changes to your equipment inventory, it’s time to learn about a “blanket” schedule to avoid a potential headache at the time of loss - because if the company doesn’t know about it, it doesn’t “exist” to them!
Drastic Changes to Real Property
Did you build, demolish, or seriously renovate any of your buildings over the last year? If yes, did you update your agent? Upgrades to a roof, heating or sprinkler system, or electric overhaul can hold significant cost savings to your premium because newer equipment and processes often lead to lower risk of a loss. Removing the protection on a building no longer standing seems like a no-brainer.. but we understand that while you’re preoccupied with handling day-to-day changes, it might slip your mind to let your agent know about them. Similarly, purchasing or selling business vehicles also needs to be relayed to your insurance provider. Though some policies might offer newly-purchased vehicle coverage, if you are to drive a brand new truck off the lot and immediately find yourself in an accident, you could be on the hook for the damages if you haven’t already let your agent know!
Influx of Inventory - Includes BPP and Stock
The Covid-19 pandemic brought many changes to daily operations, but none have probably hurt so much as supply issues! Lumber prices sky-rocketed and once full shelves started finding themselves bare. Sure, most policies include an inflation guard, but massive deviations in inventory from your norm could leave you under or over insured for your needs. Think back to when the pandemic was in full swing… how did your stock levels fare? If you were severely impacted, did you call your agent to let them know? If not, you likely paid to protect non-existent inventory!
Cyber Concerns
Cyber crime is on the rise and if you think you’re immune to it… you’re not! If you store any personal data for your customers, such as email addresses, mailing addresses, credit card information, dates of birth, or social security numbers, you open yourself up to the potential for bad actors to hack and steal that information. A quick and easy way for scammers to infiltrate your systems is through “social engineering”. Have you ever received an email from someone you think you know asking you to click a link or send gift card codes? Do you go through invoices with a fine-tooth comb before sending off outstanding payments? No matter how much scrutiny you think you and your team have, these scammers are becoming smarter and more efficient at hacking data, leaving you to deal with the monetary fallout. Most “throw on” cyber policies aren’t covering social engineering fraud under the loophole of someone “willingly” handing out the information by clicking a link or paying a fraudulent invoice.
We get it, not everyone loves talking insurance like we do. The thought of calling your agent might even make you physically recoil! But when it comes to saving money and making sure your business is protected, don’t you think it’s worth it?
So there you have it - the top conversation topics to touch on the next time you connect with your agent. Don’t make the mistake of thinking you can wait until your next renewal to disclose changes, that could be too late! In insurance, every decision comes down to one simple question - “How much are you willing to lose?”.