Is Summer the Best Time to Review Your Business Insurance?
For businesses, summer can be a good time to review insurance coverage. Mid-year financial evaluations are a natural time to check and adjust your insurance coverage. Summer also typically brings a slower pace and allows business owners to focus on detailed policy reviews.
The summer months can also bring higher natural disaster rates for fires and storms, so you’ll want to know that your insurance policies adequately cover these seasonal threats.
Why summer?
1. Mid-year financial review
Whether you’re a contractor or working with a large-scale commercial enterprise, businesses of all sizes tend to conduct mid-year financial reviews in the summer. This is a natural time to assess the first half of the year and adjust for the remaining months.
Including an insurance review during this period ensures that coverage aligns with current financial realities and future projections.
2. A quieter time usually
For some industries, summer brings a slower pace. Retailers might experience a dip after the spring rush, while educational, financial, or operational services may see fewer bookings.
It can be an ideal time to look at your insurance policies without the distraction of peak-season demands.
3. Preparation for potential risks
Summer weather brings unique risks, such as wildfires, hurricanes, and flooding. Reviewing insurance policies during this time can highlight any gaps in coverage related to these seasonal hazards.
4. Planning ahead
Reviewing and updating policies in the summer allows for adjustments before the busy year-end period.
Small businesses and contractors: specific considerations
Small businesses and contractors have unique insurance needs that require careful consideration. Here’s why summer is an excellent time for them to review their insurance:
1. Project-based adjustments
Contractors often work on a project-by-product basis, with different requirements and timelines. Depending on your industry, summer might be a quieter time between large projects, offering an opportunity to review and adjust insurance coverage.
If you’re in lawncare or another busy summer industry, consider setting a reminder on your calendar to check your policy during your usual low season.
2. Equipment and inventory checks
Summer is usually a good (warm) time to take stock of equipment and inventory, especially if you use outdoor storage. You’ll need to assess the condition and value of business assets to make sure that all items are adequately covered. This is especially relevant for businesses with seasonal variations in inventory levels.
3. Regulatory changes
Regulatory requirements can change, so check for any new regulations that might affect insurance needs, especially in industries with stringent safety and liability standards.
4. Employee coverage
For businesses with seasonal employees, reviewing worker’s compensation and liability insurance in the summer is essential. Ensuring that all employees, temporary or permanent, are covered can protect against unforeseen incidents and legal issues.
Steps for a full business insurance review
- Evaluate current policies: Start by reviewing existing insurance policies. Understand what each policy covers and identify any overlaps or gaps.
- Assess business changes: Consider any changes in your business operations, such as new services, products, or locations.
- Consult your broker: An insurance broker can provide expert advice tailored to your business. Schedule a meeting to discuss your needs and explore potential policy adjustments.
- Update coverage limits: Make sure your coverage limits are sufficient to protect against current risks. Adjust limits as necessary to match the value of your assets and potential liabilities.
- Plan for seasonal risks: Identify any seasonal risks specific to summer and ensure your insurance addresses these threats.
We are business insurance experts at Western Financial Group. We will help get you customized commercial insurance for your business at the right value for you.
