It’s that time of year again. If you’re like most people (including myself), you’ve already committed to losing 20 pounds and getting 8 hours of sleep every night. And, if you’re anything like me, you’re already starting to fall short on those goals just 2 days into the new year…
Oh well. I’ve come to learn that New Years resolutions are essentially useless. It’s only when we adopt new disciplines and form new habits that anything changes – and flipping the calendar to the next month doesn’t quite move the needle.
So, rather than 3 New Years resolutions, I give you 3 New Disciplines for you to implement in your business this year as it relates to your insurance.
- Commit to Regular Policy Reviews
In today’s world (& today’s insurance market), not only is your business constantly changing, but so is your insurance program. Oftentimes, it’s changing without you even knowing. As each renewal passes, carriers are sneaking in new terms, changes to coverages, exclusions, etc. For example, post-Covid, most carriers started to add in an exclusion for any losses related to viruses or pandemics.
Taking into consideration the fact that your business is also changing throughout the year, you are doing yourself a serious disservice by not conducting regular policy review (READ: your agent is doing you a serious disservice). By sitting down every year (at least twice) and reviewing your exposures, coverages, and alternative risk transfer programs, you can (almost) guarantee that you’re business is being properly protected.
My recommendation is to sit down with your agent half-way(ish) through the year and then again at renewal. Furthermore, stop putting so much emphasis on just the bottom line. Take price into consideration, but then take into account what you’re getting for your insurance premiums. Don’t save a few hundred dollars in return for taking on thousands of dollars of risk.
2. Take Risk Management Seriously
There was once a time where even businesses with no risk management and a laundry list of claims could find affordable coverage. In this hard insurance market, carriers are tightening up their guidelines, limiting their capacity, and taking a closer look at risk management practices.
Maybe you’ve skated by for years without claims out of pure luck. Even with a clean loss history, without the appropriate risk management practices, carriers are going to be less willing to offer competitive terms for your business insurance.
I recommend starting small. Implement a new safety program for your business that includes (somewhat) regular safety meetings. I already know what you’re thinking…”I can’t afford to take the time with my employees not working”. I’d challenge you to ask yourself this – can you afford not to? Can you afford a large claim payout? Can you afford to pay more for your insurance program every year? You don’t need to reinvent the wheel. Introduce a safety program and some regular safety talks with your employees. If you’re not sure where to get them – reach out to us here. We offer them complimentary.
3. Think Outside the Box
The world is changing quickly. Technology has had a huge impact on the way we go about our lives. Tactical defense attorney’s have set an ugly precedent with 7-figure payouts becoming more and more common. As a result, it’s created more complex exposures for businesses that need to be given more consideration.
This year, I challenge you to look at insurance through a different lens. Gone are the days (at least for now) of submitting every $100 claim. And gone are the days of just worrying about a workplace injury or damaging a customers property. Now, some of the most common (& ugliest) claims are cyber-related. The largest claims payouts now are auto accident related and are frequently exhausting underlying limits.
When you sit down for your next program review, be sure that you’re designing your program for 2024, not 2004.
I hope that you can adopt these new resolutions (disciplines) in 2024 and that they allow you to sleep well at night knowing that you’re doing everything you can to properly protect yourself, your employees, and your business.
Cheers to a happy and healthy 2024!