Seven Insurance Reviews for 2022
By Snapp Risk Management, Snapp & Associates Insurance Services, Inc. You know the drill — New Year’s means resolutions. For business owners and managers, the new year also means an opportunity to examine all the ways you might want to better protect all that you have worked for in year ahead. Below are a number of reviews you should resolve to check off your list to mitigate overall risk. 1. Liability Levels Whatever existing business policies you have in place, they all come with various levels of professional or business liability coverage (if you make a mistake, injure someone, cause harm, etc.). However, those liability levels might have been set years ago and don’t reflect the current economic situation. You may also have more business (and personal) assets you need to protect as the result of an error. Make a point of scheduling a liability level review with your broker or agent as soon as possible in the new year.
2. Replacement Value The 2021 word of the year could easily be “inflation.” You’ve seen it no doubt as you purchase supplies, pay for equipment and even deal with higher employee wages. Don’t forget to factor in the costs of goods and services for any replacement value levels on your existing policies. While you may have had an accurate cost forecast for replacing your building or equipment in 2021 or even 2020, everything has increased, sometimes by a factor of 30 – 50% or more. If you face a loss, be sure you aren’t short when it comes to the necessary cash to replace losses at current market prices. 3. Loss of Use An important part of your overall insurance package is ensuring that you are covered if you are unable to use your business or facility. Whether by natural disaster or even just an external issue that makes you unable to open or operate (such as
something like a nearby gas leak), you may not be able to generate any income. However, hard costs continue to accumulate and a Loss of Use provision gives you compensation to help manage recurring expenses. The new year is a good time to review your Loss of Use coverage and raise limits if necessary. 4. Examine How New Laws Affect Your Liability Every January 1 brings new laws that affect business owners across the board. 2022 will be no different and be sure you are up to date on new regulations that might open you up to new liability issues. For instance, some California business owners (warehouses and distribution centers) will now need to follow state AB 701, which deals with employee quotas and breaks and meals. In a nutshell, the new law says that “if a current or former employee believes that meeting a January 2022 socalrha.org | 15
