Corporate risks come in many guises. From natural disasters and cyber crime, to poor conduct and penalties for non-compliance, the myriad of risks facing corporations are seemingly endless and ever-evolving. Unexpected mishaps can pop up at any time, potentially leading to detrimental outcomes - even for organizations with the most robust balance sheets.
Alongside the right risk management strategy, having the right types of corporate insurance cover in place is, therefore, a matter of tremendous importance. So, without further ado, this article focuses on the top 6 things businesses should consider before the corporate insurance renewal period.
What do companies and business owners need to know about corporate insurance?
One thing business owners and companies need to know about corporate insurance is that when there are changes to the operations (e.g. new office locations, new products/services, targeting clientele from new industries), their current insurance solutions may not be enough to safeguard against all potential mishaps and risks.
Sometimes, it could also be that they're paying for coverage that they don't necessarily require. Striking a balance is, therefore, imperative.
6 things to consider before the corporate insurance renewal period
An annual review of your corporate insurance solutions is a solid idea to not only maintain robust coverage for your company and staff, but also to control costs and test the market. The corporate insurance renewal process, however, can be time-consuming, so it's important to start your research early to ensure there is ample time before the renewal deadline to determine if any changes to your policies are required.
The needs of each business will, of course, vary according to their size, industry, location, and operations, but here's a general list of the 6 things to consider before the corporate insurance and employee benefits renewal period:
1. Does the provider offer flexible benefits and levels?
Even what was originally the best-fitting corporate insurance plan can become irrelevant over time. A good corporate insurance and employee benefits provider will work with you to ensure changes are made if, and when necessary. This can be for a number of different reasons, such as cost containment, changing employee demographics (e.g. growing number of millennials), new office locations, etc.
Renewing corporate insurance can be a tricky task, but ensuring you're with a proactive provider and corporate insurance broker can go a long way in making the process much, much easier.
2. Is your business offering new products/services?
If your business is planning to, or has recently introduced new products/services, it would be a good idea to secure a professional liability insurance policy or review your current plan if you already have one.
3. Have you moved/opened an office in a new location?
Operating or expanding in a new location may mean adjustments to your corporate insurance. Your property insurance, for example, may need to be updated to cover your new office(s), as well as your new pieces of equipment.
If you plan on opening an office in a new country, it's important to bear in mind that compliance requirements (e.g. health insurance law, the GDPR) may also need to be met. In Dubai, for example, employers are legally required to offer their staff Dubai Health Authority (DHA) compliant group health insurance coverage.
4. Has there been a change in the makeup of your staff?
If there are changes to the number of employees - or the employment status of your staff - you might want to review your worker's compensation insurance, which covers losses resulting from illness/accidents arising during the course of your staff's employment (e.g. loss of salary).
5. How are your staff engaging with your group health insurance offering?
Having an ill-fitting group health insurance policy in place can lead to poor engagement. For example, if your workforce is mostly made up of university graduates, there's a high chance that most of your staff won't need maternity benefits early on in their careers.
6. Has the nature of your business changed?
Businesses' risk landscapes are ever-evolving. For example, with the world going increasingly digital, the entire structure of the majority of businesses is shifting - leaving them more vulnerable to cyber crime-related risks like hacker attacks on databases. When reviewing your corporate insurance, it's important to conduct a proper risk assessment to determine whether your policies cover new risks that may threaten your business' operations.
Making a decision when renewing corporate insurance
Whilst you can go through the corporate insurance renewal process alone, the best way to enhance your renewal process is to engage the help of a specialist. As the world's leading employee benefits and corporate insurance broker, Pacific Prime's corporate team are on hand to offer a unique approach to renewals that puts your company at the center of all our decision making.
We're not just like any other broker; partnering with us grants you access to a wide range of value-added benefits like renewal negotiations at no extra cost vs going direct to the insurer. Contact our team to get started with the world's leading broker, or download our complimentary corporate guides to brush up your knowledge of employee benefits and business insurance.