9 Discussion Points for Your Pre-Renewal Meeting
Discuss Your Renewal Process Before Your Business Insurance Policy Expires
Everyone is stretched too thin nowadays. Most company executives are forced to do a lot more than they did a mere ten years ago, especially in the manufacturing industry. I think everyone’s holding to the mantra – “do more with less.” With all of these new responsibilities, everyone’s finding ways to get time back. If you’re like me, there are some areas where you need to cut corners to make up time. How else can you get it all done? Even with all of these demands, I’m advocating on spending time with your insurance broker before you have your insurance renewal – or what we call the pre-renewal meeting.
Business insurance policies have a 12-month cycle. Most manufacturing executives generally meet 30 days before their insurance policies expire to renew coverage. Before this meeting, I believe it’s vitally important for a business executive to meet with their insurance broker to discuss and strategize about what their renewal will entail. This meeting should take place approximately 100 days before your renewal. It can be done over the phone or through video conference if needed; just get it done. Although every meeting will be different based on individual circumstances, I do recommend some key topics that should always be discussed:
- Your company. How has your company changed over the past year? Are you in any new markets? Have there been any noteworthy changes in your financial picture? Did you make any large capital expenditures?
- Your limits. Do you have the correct limits of insurance on your policies? Are your buildings valued correctly? Are you covering all of your equipment? Will your limits cover a bad scenario loss without due financial hardship to you? Do you have the correct payroll and sales information on your policies?
- Your coverages. Do you understand all the coverages that are available to you? Do you have a good strategic reason on why you haven’t purchased certain coverages? Has your business changed so that you might now need new coverages?
- Your company’s performance. How has your company performed over the past year? Did you keep your losses at a low level? Did you make progress on all of your risk management goals? If there were any let downs, why did they happen?
- New goals. What goals will you need to focus on for the next year? Are you looking to lower your overall loss dollars? Will you focus on claims frequency? Are you looking to reduce large losses?
- State of the market. What kind of insurance market are we in? Are we in a soft market where prices are falling or a hard market where prices are increasing? How will this affect your renewal?
- Your current carrier. How has your current carrier performed for you? Are you happy with their performance? Are they happy with you? How have they been renewing other clients?
- Your expected renewal. Based on the relationship with your carrier and the state of the market, what are the expectations for the renewal? Does this fit your financial desires?
- Other insurance carriers. If the expected renewal doesn’t fit financial expectations, should we invite competition from other carriers? If so, how many? Who will spend the time to accomplish this?
These topics are critically important to discuss with your insurance professional prior to starting the renewal process with your insurance carrier. It’s a good process that forces you to think strategically about your upcoming renewal and gets both you and your insurance broker on the same page. I hope that you’ll consider adding a pre-renewal meeting into your meeting schedule. It’ll be well worth your time.
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