The Importance of Updated Information in Your Insurance Renewal

The Importance of Updated Information in Your Insurance Renewal

Whether you’re planning to renew your coverage with your current insurance carrier or looking for a new option, it is critical that you pay close attention to the information that is being submitted on your behalf. Yes, that is what you have a broker for and no, that is not enough. You know your business better than anyone else, including the best advisor. It is critical that you remain involved in the buying process. There are things that may have changed in your business throughout the year, so it is a benefit to you to make sure those are correct as you approach your insurance renewal.

Here is some of the information that we see regularly missing, incomplete, or incorrect when reviewing an account to renew or write new:

• Plot plans labeled with building names: we often receive plot plans that are labeled with numbers or are dated and missing full structures. Should a claim occur, this slows down the process of determining which are impacted buildings on the policy.
• Complete equipment lists: inland marine coverage is based on a listing of your equipment, including a description, make, model, year, and serial numbers. Without this, you could have a gap in coverage!
• Updated business income worksheets: Going through the exercise of completing or updated a business income worksheet will help you feel comfortable that the coverage you’re seeking matches what you need should you have a loss.
• Correct auto and drivers lists: As you add or subtract vehicles or drivers from your roster, your insurance carrier should be notified. Renewal is a good time to double check that your policy matches your current operations.
• Updated sales and payroll figures: These are used as the basis for rating general liability and workers’ compensation coverages. It is important that these are updated annually to reflect your actual operations.
• Changes to your business your business operations: if you are renewing your coverage and have made material strategic changes to your business operations, it is critical that your carrier knows. This could influence rating bases, coverages, and risk management considerations in your renewal.
• Current pricing: when shopping for new insurance coverage, we recommend giving your current or renewal pricing instead of hiding it. When we know your current pricing, we can determine quickly if we can be a competitive option for you. If not, we don’t want to waste your time!

Why does it matter?

Think about your own business and all the decisions you make in the course of operations. Maybe you are making a bid for a contract, or getting specs from a potential client, or even seeking a capital expenditure upgrade with a potential vendor. It is the information that you collect or give that helps you make an informed decision about who you will work with, how, and at what price or cost. It will also have an impact of the success of that job or project.

It is the same for your insurance coverage. The above details, along with all the information included in your insurance applications, are used to determine eligibility, pricing, and coverage levels. More than that, it can also have an impact on how a claim is handled in the event of a loss. You buy insurance to transfer risk off your financial statements and onto your insurance carrier’s in exchange for a premium that is based on the information you provide. In the event of a claim, that information helps expediate claims handling and leads to fairer settlements, which will get you back to business faster.

Your time and attention upfront in the insurance buying process will pay off in your ongoing insurance experience. We also encourage clients to do an in-depth review of their insurance program and partners every 3-5 years to ensure that your needs are met. Any more frequently than that could have a negative impact on your ability to establish a strong relationship with your insurance carrier.

If you have any questions about your PLM policy or are interested in learning more about PLM, please contact your local Business Development Representative. I can also be reached directly at ldigangi@plmins.com or 267-337-4133. Lindsey DiGangi, Vice President- Field Operations