Understanding business insurance renewal
All businesses need to renew their commercial insurance periodically. Most insurers will send you a reminder when renewal time is coming up. When you receive the notice, it's a great chance to evaluate your insurance needs and see if they've changed since you last purchased or renewed a policy. Businesses that have grown, added equipment, or expanded services over the past year may need more protection than before.
If you're unsure about what coverages you need or whether you're getting the best value, our experts can help. Contact Progressive Commercial for a quote and customized coverage recommendations.
How does the commercial insurance renewal process work?
Business insurance policies typically last one year, so most businesses will complete the commercial insurance renewal process annually, following these steps:
- Review your current policy. Look at your existing terms, coverage, limits, and exclusions.
- Evaluate changes in your business. Think about what's changed for your business this past year — like new equipment, employees, and services.
- Talk to your agent or insurer. Share updates and discuss if your current coverage still fits your needs. An insurance expert will consider your risk exposure, claims history, market fluctuations, and more.
- Get your renewal offer and make adjustments. Your insurance company will send updated terms, pricing, and coverage based on your current needs. You can ask questions and request changes, such as adjusting your deductible, before accepting.
- Confirm your renewal. Once everything looks right, finalize your policy for the next year.
Progressive Commercial experts can help you through the renewal process. Our in-house agents can walk you through your small business insurance coverage options and connect commercial auto customers with discounts.
Won't my commercial insurance automatically renew?
Some business insurance policies may renew automatically, but it depends on your business, the type of policy you have, and your claims history. If renewal is automatic, your insurer will typically send you a notification a month or two before the renewal date.
It's important to review your policy and make sure it's updated, even if it's set to renew automatically. A yearly review gives you a chance to reflect on your needs and gives you the confidence that you have appropriate coverage for your business.
When should I complete the commercial insurance renewal process?
You should begin the renewal process a few weeks to a few months before your policy expires, depending on the size of your business and the complexity of your insurance requirements. Beginning early gives you enough time to complete your renewal without a gap in coverage.
Reducing your risk can pay off
Review your risk management practices when it's time to renew your insurance. Simple steps like installing an alarm system or holding employee safety training sessions can decrease your chance of an accident. Documenting your efforts to stay prepared could result in a lower premium.
Learn more about risk management with the Prepare and Protect Guide from Progressive Commercial.
Commercial insurance renewal checklist
An annual insurance review may seem like a lot to consider, but preparing a commercial insurance renewal checklist outlines the key steps you should follow. Common considerations include:
- Company vehicles: If your business has bought or sold company vehicles, such as cars or tractor-trailers, you'll need to update your commercial auto insurance.
- Assets: Changes to your assets like rented office space, office equipment, or inventory in a warehouse may require changes to your business owners policy.
- Services: Some professions, such as lawyers and real estate agents, may need to carry professional liability insurance. Adding new professional services may require you to take a fresh look at your professional liability policy.
- Size: Businesses with employees typically need workers' compensation insurance according to state workers' comp laws. If you've added or reduced staff, you may need to make changes to your policy as part of the business insurance renewal process.
- Location: Moving your office or headquarters can impact your insurance requirements or the appropriate coverage limits for your business.
- Risks: Anything else that changes your risk profile may result in changes to the coverages you want or need to carry.
Updating your policy at commercial insurance renewal
Once you've evaluated your needs, look for a policy with the protection you want. It should also account for any changes you expect to see in the coming year. Growing businesses, especially, may need expanded coverage for moves they plan to make in the coming months. Examples include:
- Expanding into neighboring states may require more insurance coverage as you transport inventory, travel more miles, or open new business locations.
- Adding new products or services may require new coverages to give clients peace of mind or to comply with industry regulations.
- Changing office locations may require different coverage limits to adequately protect your business property.
Our insurance experts can help identify how changes you're planning might affect your policy needs.
Market fluctuations and other risk factors can also cause price changes even if your business hasn't changed. Getting expanded coverage may reduce worry about what changes the market will bring if you wait.
That's why renewal time is a great opportunity to compare quotes for different policies. The cost difference for expanded protection may be less than you think, especially if you qualify for discounts. Getting several quotes for different types of coverage and comparing them can help you decide what's best, now and for the coming year.
Take advantage of discounts
When renewing your policy, be sure to explore available discounts. Some insurance companies offer reduced rates for having multiple policies, paying in full, or setting up auto pay. Ask about commercial auto insurance discounts and other options when you get a quote.
Progressive Commercial auto customers can save even more with a fleet management tool called Snapshot ProView® that monitors speed and location. At renewal, that information allows us to provide customized rates that reflect your actual driving patterns. New customers save an average of 9% with Snapshot ProView.††
If you're preparing for your annual commercial insurance renewal process, contact our experts to see how we can help you save.
