Pub. 2 2012 Issue 4

19 Annual “Checkups” for Your Business Many of us make it a point to see our doctor for an annual medical checkup. This is an important opportunity to have a medical professional assess the current condition of our health. I t also allows us to ask questions of our doctor about medi- cal issues or concerns, and it is a chance to consider making changes to accommodate a healthier lifestyle. When was the last time you turned to your insurance pro- vider for a similar checkup of your business insurance and risk management programs? Get an insurance “physical” As your business changes and grows, so do your business insurance needs. It is a good idea to consult your insurance advisor, at least annually, to review your insurance coverage in light of changes your business may undergo from year to year. For example: • You may have purchased or sold buildings, personal property, or vehicles. • You may have experienced fluctuations in payroll or sales receipts as business conditions change. • You may have undertaken new operations or developed new products or services. • You may need to respond to new legal or regulatory issues. An annual review—or “physical exam”—of your insurance coverages helps ensure that coverage purchased last year ad- equately protects you today. Annual reviews are a good time to consider, for example, whether your policy limits are sufficient to replace damaged property. They provide you and your insurance representative an opportunity to discuss insured and self-insured exposures, as well as consider any new exposures that can impact your current insurance program. Annual insurance reviews are also a good time for you to assess the performance of your current insurance provider. Are claims paid according to your expectations? Is the insurer still financially sound and stable? Are you receiving the promised level of policy service and loss control support? Answers to these questions can have a huge impact on your business andmay influ- ence your decision to continue to do business with your current insurance provider. Give your risk management program a “checkup” In addition to an annual review of your insurance program, you should also expect your insurance professional to review your business risk management strategies on a yearly basis. A thorough review of your risk management plans can help you and your insurance representative identify new exposures or  business “checkup” — continued on page 20