Business Insurance - Importance of a Proactive Agent

Most businesses spend thousands of dollars per year to protect themselves.  General liability, professional liability, workers comp, business autos, and more.  While no one enjoys paying for insurance, it does provide peace of mind...or so it should if your business is properly insured. 

Insurance premiums are driven by many factors, including type and location of business.  Two additional factors that often have a direct impact on premiums are a company's gross sales and the value of business personal property (BPP). BPP includes inventory, equipment, furniture, etc...  Essentially, if you can flip the building upside down and the item would fall out, then it is most likely BPP.  

Why are we focusing on gross sales and BPP? While the type and location of a business don't often change, gross sales and BPP do.  If these two key metrics are not updated annually, your business may not be properly insured.  If your gross sales declined or the value of your BPP has dropped, your business is probably over-insured.  Over-insured is code for throwing away valuable money.  Alternatively, if your gross sales increased or the value of your BPP is growing, your business may be under-insured, putting your business at risk.     

So what does this all mean?  If you can't recall the last time you spoke to your insurance agent about the performance of your business, it may be time to find a new one.