Identifying coverage mistakes is one thing small businesses are doing when evaluating their business insurance plans come the end of the year.
An annual business insurance review consists of reviewing employee benefits, general liability coverage, workman's compensation and commercial auto insurance, along with many other types of policies a business might carry.
With the current recession, many businesses are looking to cut some of their expenses, and an annual business insurance review can help them figure out what is a necessity and what is an unnecessary perk. However, Butch Zemar, chief sales officer at Elite Benefits of America, a marketing organization specializing in insurance, warned that business insurance coverage should generally not be among the expenses on the chopping block.
"Many businesses are currently reviewing their 2012 business insurance to have it locked in for January 1," Zemar said. "As they claw their way out of this recession, cutting back is one of the only options. Insurance is one area that should not be cut."
According to Business 2 Community, business insurance is designed to prevent businesses from suffering huge losses, and provided a list of some types of coverage businesses should consider.
The website said umbrella liability, which increases the limit on liability insurance for up to 5 million dollars, is one type of insurance a small business owner may want to consider, especially in high-risk industries that are especially vulnerable to litigation.