How To Save $$$ Using Insurance Policy Reminder Software
How many insurance policies are currently protecting your business? It’s not a simple question. Most businesses have a range of insurance policies protecting different types of assets. And unless you’re paying attention, the policies you have in place can easily expire without your knowledge.
If you’re not aware that your insurance policies have expired, then you’re leaving your business exposed to potentially disastrous losses. A simple lapse like this could cost you thousands of dollars in coverage that you didn’t even know was there.
However, that’s the obvious way that your business pays through a lost policy. In fact, there’s a way that better policy management can SAVE small businesses money – you just need to get organized.
The best way to avoid this scenario is to make sure that you’re aware of all the insurance policies that you have in place.
Here’s a quick way to do this:
Step 1: Create an inventory of all your insurance policies.
This is easier said than done, but it’s an important first step. If you’re currently paying for insurance policies on your business assets, then you need to have an inventory of all those policies. Otherwise, you won’t know which ones have expired.
Step 2: Isolate the policies that are due to expire vs those which roll over.
Using the inventory you created in the first step, you can isolate which policies are set to expire next. This will help you figure out which policies are most in danger of lapsing.
However, you should still track reminders on those which roll over or autorenew. This is key to saving money (more on this later)!
Step 3: Create a reminder system to track your insurance policies.
Once you know which policies are set to expire next, you can create a reminder system to help you track them. You can use something as simple as an online calendar to help you remember to renew your policies.
Or, you can use an automated insurance policy reminder software such as Contract Hound to help you keep track of all your policies.
What happens if you fail to renew a policy?
Sometimes, nothing. But your policy lapsing can have some nasty consequences:
1) You could lose coverage.
2) You could pay more for coverage.
3) You could be sued or taken to court for an incident that occurred while you were uninsured.
4) You could be denied insurance coverage in the future.
5) You could be fined or penalized for being uninsured.
6) You could be denied access to government contracts and subsidies.
7) You could lose any no-claims bonuses you have
Why Renewing an Insurance Policy Early Can Save You Money
One of the best ways to save money on your insurance policies as a small business is to make sure that all of your policies are renewed (or auto-renewed) on time.
If you’re not aware, most insurance policies are priced on a yearly basis. This means that every year, the insurance company will re-evaluate the risk of insuring you and adjust their premiums accordingly.
If you’re lucky, the insurance company may decide to lower your premiums. However, most of the time they will increase their rates. Often, they’ll do this automatically shortly before renewal, and then send you a bill for the new period of coverage.
When that happens, you’ve lost your chance to negotiate (or switch to a better provider).
This is why renewing your insurance policies early is so important. If you’re able to renew your policies a few months before they expire, then there’s a chance that you’ll be able to lock in the old, lower rate.
This can save you hundreds or even thousands of dollars in extra costs.
Won’t my insurer do this for me?
Many insurers will send out renewal reminders to their clients. However, this is not a guarantee that you’ll receive one. In fact, it’s quite common for insurance companies to forget to send out renewal reminders.
Here’s a word of caution from one forum reader at MoneySavingExpert.
In addition, there are several gray areas that make it difficult for insurers to keep track of when policies are due to expire.
For example, if your business is owned by a corporation, then each corporation has a different insurance policy. If you’re not paying attention and the insurance policy for your corporation expires, then you could potentially lose coverage for your business.
The moral of this story is that for important business paperwork, you shouldn’t be relying on anybody else to remind you. Setting up a simple reminder system, using insurance policy reminder software like Contract Hound, is an easy way to make sure your business isn’t caught out by an unwanted rate hike – or worse, left without coverage.
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