August is a good month to take a fresh look at your business. Summer is winding down, fall is approaching, and many Maryland business owners are getting ready for a busier season. Before things pick up, there is one area that deserves a place on your checklist: commercial property insurance.
Your business may look very different today than it did when you purchased your policy. You may have added equipment, remodeled your space, purchased new inventory, or expanded your operations. If your insurance coverage hasn’t kept up, you could have a problem when you need it most.
Here are seven things to review before fall arrives.
1. Has Your Property Changed? Start with the basics. Have you made improvements to your building or leased space this year?
Maybe you renovated an office, added a storage area, replaced flooring, upgraded electrical systems, or made other improvements. These changes can affect the value of your property and may be worth discussing with your insurance agent.
If you lease your business location, don’t assume your landlord’s insurance covers everything you own inside the building.
2. Check Your Equipment and Business Property. Take a walk through your business and make a list of your major equipment, furniture, computers, tools, machinery, and other property.
Did you purchase anything new during the past year?
Businesses often add equipment gradually and forget to update their insurance information. Keeping an accurate inventory can make it easier to determine whether your current commercial property insurance still provides the protection your business needs. It can also be helpful to keep receipts, photographs, and other records in a secure location.
3. Review Your Inventory. Retailers, restaurants, wholesalers, and other businesses may carry significantly different amounts of inventory throughout the year.
If your inventory levels increase during the fall or holiday season, make sure your coverage reflects the value of the property you actually have on hand.
Don’t wait until after a loss to discover that your inventory has changed significantly since your last policy review.
4. Think About Weather and Property Damage. Maryland businesses deal with a variety of weather conditions throughout the year, including heavy rain, strong winds, winter storms, and other severe weather.
As you prepare for fall and winter, look around your property for potential trouble spots. Check roofs, gutters, windows, doors, exterior lighting, drainage areas, and other areas that could contribute to property damage.
Insurance is important, but prevention matters, too.
Maryland’s Occupational Safety and Health program provides resources for businesses regarding workplace safety and inspections. Reviewing your property’s condition and addressing obvious hazards can be a smart part of your fall preparation.
5. Business Income Coverage. What would happen if your building suffered significant damage and you couldn’t operate for several weeks?
The physical damage is only part of the problem. You could also lose income while repairs are being completed and face additional expenses while trying to keep the business running.
Some commercial property policies may provide coverage for certain losses associated with a business interruption. Lindquist Insurance notes that some policies can cover lost income when a business cannot operate, as well as certain additional costs associated with rebuilding.
Ask your insurance professional to explain what your current policy covers and whether additional coverage may be appropriate for your situation.
6. Review Your Coverage Limits. This is one of the most important parts of your end-of-summer insurance review.
Has the value of your building, equipment, inventory, or other business property increased? Construction and replacement costs can change over time. If your policy limits were established several years ago, they may not reflect today’s costs.
Lindquist Insurance works with businesses to develop commercial property coverage based on their individual needs, including coverage for owned or leased property, equipment breakdown, theft, and a range of other risks. A policy review allows you to discuss those changes before you need to file a claim.
7. Schedule a Commercial Property Insurance Review. Finally, don’t put off the conversation. You don’t need to wait for your policy renewal date to ask questions. If your business has changed, your insurance should be reviewed to make sure it still makes sense for your current situation.
Make a list of anything that has changed since your last review and bring it to your insurance agent. A conversation about your building, equipment, inventory, operations, and potential risks can help identify areas that deserve attention.
The end of summer gives Maryland business owners a natural opportunity to get organized before the pace picks up again. Reviewing your commercial property insurance is a relatively simple step that can provide greater confidence heading into the fall.
At Lindquist Insurance, we help businesses in the Frederick and Annapolis areas find insurance solutions that fit their individual needs. As an independent insurance agency, the team can review your situation and help you explore coverage options.
Review your commercial property insurance before fall. Contact Lindquist Insurance at (301) 694-0008 for a free quote and policy review. You can also visit the Lindquist Insurance commercial property insurance page to learn more about protecting your business property.
*** You can learn more about commercial property at the Maryland Occupational Safety and Health program website.
