Small and Medium-sized Enterprises, or SMEs, are one of the many types of businesses that need insurance. If you own a startup, your business belongs to the SME category, and having insurance is one of the best things you can do. And even if you already have an SME business insurance, don’t forget to apply for renewal.For many business owners, insurance renewal is one of the last things they manage, which is why they often miss the opportunity to get the best coverage options.In this article, we’ll discuss some of the tips that can help you manage your SME business insurance renewal for your startup.
1. Start as Early as Possible
If it’s about a year before your business insurance expires, you can begin to review your insurance coverage for at least 60 days before the renewal. This allows you to check every detail of your business that can significantly affect the insurance renewal.In addition, when you review our insurance right away, you can start with the renewal as early as possible, giving you enough time to think and decide.
2. Review Changes in Your Business
Your business may have changed since you availed yourself of the insurance. Whether you have hired more staff, bought a new commercial vehicle, added new equipment, or extended the commercial space, you should consider these things when renewing your SME business insurance.When reviewing the changes in your business, start with either the top-down approach or the minor details first, before examining the major changes.
3. Reassess Your Coverage and Policy
Once you’re done checking out the changes in your business, the next thing you should do is to reassess your current insurance coverage. In doing so, you should check if there are any redundancies in the policy, or if there are some coverages that you no longer need. Take note of these things, and don’t forget to discuss them with your insurance broker or adviser.
4. Compare Quotes and Insurance Companies
Being loyal to a specific insurance provider doesn’t mean you can save more. In some cases, it’s better to explore more options so that you can find the best insurance provider that suits your business needs.When it comes to SME business insurance renewal, you should compare quotes and insurers to find a compatible option. This allows you to save as much money and find the best insurance for your business.
5. Negotiate for Better Terms
Whether you’re planning to change your insurance provider or not, you can negotiate for better terms. Just secure a copy of proof that you have a good claims history and the risk management practices you implement in your business.Since many insurers offer discounts to businesses, negotiating for better terms is a common thing many business owners do, so don’t hesitate to give it a shot.
6. Check the Legal Requirements
If there are local requirements for the business insurance coverage, make sure to know the things you need to accomplish and the right coverage. In addition, there are also legal requirements that business owners should comply with, so that the business continues to grow.For instance, one of the types of coverage that’s usually included in the local regulations is workers’ compensation. If you fail to avail yourself of this coverage, you may incur some penalties.
7. Discuss Among Department Heads
When it comes to the renewal of SME business insurance, avoid relying on the decision of one person. Instead, consider meeting with the key decision makers in the company, and talk about the renewal process of the insurance.Since there are specific people assigned to handle each department, or if financial officers are also present, everyone can grasp the whole situation, and you can make an informed decision.
8. Keep Documentation Organised
Another thing that can significantly help in ensuring you can have a successful insurance renewal is if you have an organised documentation of all the requirements. When you do, you can identify the right insurance coverage and premiums. In addition, if you even encounter an unexpected instance when you need financial support, you can easily file for claims. You can also show or submit financial reports and records that can help with the planning process.
9. Work with a Trusted Insurance Broker
Whether you haven’t worked with an insurance broker before or you’re planning to change the one you already hired, don’t forget to look for a trusted one. A trusted insurance broker can handle most of the things that need to be done when it comes to insurance renewal. You just need to inform them about the changes in your company, your preferences, and other essential details. Once you do, they’ll gather all the necessary facts you need to know, and they’ll discuss them with you. However, the final decision is up to you, and you can inform them about the changes you want to make.
10. Make Renewal Part of Your Annual Business Review
If you want your business to move forward, you should ensure that the insurance renewal is an annual part of your strategic planning. In addition, if possible, make necessary updates, especially if there’s a significant change in your business, such as a new branch or hiring a lot of new employees.
Final Thoughts
Managing insurance renewal for SMEs can be overwhelming at first, especially as a startup. However, by understanding its importance and trying out the tips listed in this article, you can come up with a better solution on how to handle it and help your business stay protected.
