Combining Your Commercial Insurance Policies
In the world of business, protecting your assets and mitigating risks are paramount. Commercial General Insurance / Business Insurance
policies play a crucial role in safeguarding your business against various unforeseen events, from liability claims to property damage. However, as your business grows and evolves, you may find that you have multiple insurance policies in place and due dates scattered throughout the year. Not only can this be tiresome due to the amount of time spent each year managing your placements, it can also be quite dangerous as it becomes hard to keep track of when policies are expiring, leading to cover expiring and you being unaware.
Combining these policies can offer numerous benefits, both in terms of cost savings and overall coverage. In this article, we will explore the ways you can combine your multiple Commercial Insurance policies and the advantages of doing so.
The Multiple Policies Dilemma
Most businesses acquire insurance policies over time to address specific needs and risks. This can result in a mixture of policies from different insurers covering various aspects of your business. While each policy may serve a purpose, managing multiple policies can be complex and expensive.
Managing multiple policies can lead to higher administrative costs, increased paperwork, potential gaps and overlaps in coverage and severe headaches when a claim occurs trying to work out which insurer/s you need to involve.
Benefits of Combining Policies
1. Cost Savings:
Combining your insurance risks as much as possible, offers an effective solution which will not only usually be more costs effective, but it will also often increase the level of cover on offer due to the economy of scale of your risk for insurers. Ultimately giving you more 'bang for your buck' and more leverage within the Insurance market.
2. Simplified Management:
Dealing with one insurer for each of your insurance risks, whether that be property, liability, motor & equipment fleets, streamlines the administration of your insurance. You'll have a single point of contact for claims and inquiries, reducing administrative burdens.
In addition, you can discuss moving all of your policies to a common renewal date, bringing all of your polices due on a single date each year.
3. Reduced Coverage Gaps:
Combining policies can help ensure there are no overlaps or gaps in coverage. Insurers work to create a comprehensive insurance package tailored to your business needs.
4. Customised Coverage:
Insurers can tailor the bundled policy to your specific requirements. This ensures that you have the right coverage for your unique business risks.
5. Potential for Additional Coverages:
By combining policies, you may gain access to additional coverages or endorsements that would not be available with individual policies.
6. Streamlined Claims Process:
Dealing with a single insurer simplifies the claims process. You won't need to coordinate claims across multiple insurers, leading to quicker resolutions.
How to Combine Your Commercial General / Business Insurance Policies
1. Consult an Insurance Advisor:
2. Evaluate Your Current Policies.
By having an Insurance Advisor conduct a Risk Review of your current Insurance Portfolio, they will start by reviewing all your existing Commercial Insurance policies and provide you with an overview of what risks can be combined under one policy, with one renewal date as well as alerting you to any uninsured exposures you may need to address.
3. Identify Overlaps and Gaps:
Your Insurance Advisor will look for areas of overlap, duplication, and gaps in coverage to ensure that all your business risks are adequately addressed.
4. Customise Your Policy:
Work with your chosen advisor to customize your policy to meet your business's specific needs. Tailoring the cover to ensure it protects all the necessary risks.
5. Request Quotes for Combined Risks and Uninsured Exposures:
Your Insurance Advisor will then obtain quotes from insurers for bundled policies where available and compare these offerings with the existing policies you have placed.
6. Consolidate Your Policies:
Once you are satisfied with the new policy/ies, cancel your existing policies and consolidate your insurance coverage under the new bundled policy/ies. Your existing Insurance providers will usually issue a pro-rata refund for any unused portion of the insurance period where policies are canceled in the middle of the insurance period where the policy is cancellable.
Combining your multiple Commercial General / Business Insurance policies is a smart strategy for businesses looking to reduce costs, simplify management, and enhance coverage. By streamlining your insurance coverage, you not only protect your business more effectively but also save time and money.
In the ever-changing landscape of business, being proactive in managing your insurance is a wise investment in your company's future. Contact us at Crucial Insurance & Risk Advisors to find the best combination of policies that align with your business's unique needs and risk profile.