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Policy renewals: Has your insurer been naughty or nice?



An insurance renewal review should be on every company’s annual to-do list—and it should be checked twice! Just as your business grows and evolves every year, so should your insurance program. Along with being proactive and preparing for renewal months before your policy expires, there are a number of best practices to put your business in the best position to maximize policy recovery, including doing your research, evaluating changes to your business, engaging appropriate stakeholders and perform a policy audit with a coverage attorney.

Shop around

An early start to the renewal process allows for careful decision-making and more time to engage in negotiations with the insurer. Even if the preference is to stay with the existing insurer, shopping around creates some purchasing power in the negotiation process.

Evaluate changes in operations or business practices

Risk control and mitigation have a direct impact on your premiums and the availability of coverage. Assess any changes in the business̵

7;s risk exposure and make necessary adjustments to the insurance cover.

Engage appropriate stakeholders

In addition to involving internal stakeholders such as the C-Suite, it is important to engage appropriate external stakeholders. Hire a broker to ensure your insurance program is marketed effectively and negotiate key terms of the policy. The strength and size of your business can play a role in underwriting. Marketing multiple program areas to an insurer can also create visibility and commitment from management to help secure better policy terms and rates.

Policy audit or review

Having your current or potential policy reviewed by a coverage attorney allows your business to leverage market and litigation experience to enhance your policies with state-of-the-art terms and wording. Insurance lawyers stay current on recent litigation outcomes to understand how different courts interpret policies and what language is most beneficial to policyholders. A coverage attorney can review policy terms and provide valuable insight on a variety of issues, such as the legal ramifications of a policy’s claim notification requirement or whether the computer fraud coverage policy language in your cyber policy has been interpreted to include phishing and email spoofing- system. In addition, obtaining confidential advice on sensitive business matters before using your broker to negotiate insurance terms can be invaluable if a dispute arises and you end up in litigation with your insurer.

Hasty decisions before renewal can leave a company vulnerable to coverage gaps. Policyholders should take the time to review their policies with trusted insurance advisors now to optimize their coverage and maximize coverage in the event of a loss.


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