The end of the year is a busy time for Utah business owners, but it’s also one of the best times to take a hard look at your commercial insurance. Your business has likely changed over the past 12 months. You may have hired employees, bought equipment, added vehicles, signed new contracts, or grown revenue. If your insurance hasn’t kept up, you could be underinsured, overpaying, or missing coverage you now need.
Use this checklist to review your commercial insurance before the new year, and before your next renewal.
1. Update Your Revenue and Payroll Estimates
General liability and workers’ compensation premiums are often based on revenue and payroll. If those numbers have grown and your policy still reflects last year’s figures, you may face a surprise bill at your premium audit. If they’ve decreased, you may be paying more than you need to. Give your agent accurate projections for the coming year.
2. Review Your Employee Count and Job Classifications
Workers’ comp rates depend on the type of work your employees do. Make sure every employee is in the right classification code, and let your agent know about new roles, seasonal hires, or employees who have moved from office work into field work. Utah requires most employers to carry workers’ comp, so adding staff without updating your policy can create problems.
3. Check Building and Equipment Values
Construction and equipment costs have risen significantly. If your property limits haven’t been updated in a few years, your building or business personal property may be underinsured. Add any new computers, tools, machinery, furniture, or inventory purchased this year. Also confirm whether your policy pays replacement cost or actual cash value.
4. Add New Vehicles and Drivers
List every vehicle your business owns or leases and every employee who drives for work. Remove vehicles you’ve sold. If employees drive their own cars for business errands, ask about hired and non-owned auto coverage, which protects your business when an employee’s personal vehicle is involved in an accident on company business.
5. Review New Contracts and Lease Requirements
Did you sign new client contracts, vendor agreements, or a new lease this year? Many contracts require specific liability limits, additional insured endorsements, waivers of subrogation, or primary and noncontributory wording. Missing one of these requirements can cost you a contract or leave you responsible for a claim.
6. Evaluate Your Liability Limits
As your business grows, your exposure grows too. Consider whether your general liability and commercial auto limits still make sense, and whether a commercial umbrella policy would provide affordable additional protection.
7. Look at Emerging Risks: Cyber and Employment Practices
Two coverages many Utah small businesses still lack are:
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Cyber liability insurance, which helps cover data breaches, ransomware attacks, and funds transfer fraud. Utah law requires businesses to notify affected residents after certain data breaches, and those costs add up quickly.
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Employment practices liability insurance (EPLI), which covers claims like wrongful termination, discrimination, and harassment brought by employees or job applicants.
8. Confirm Business Income Coverage
If a fire, burst pipe, or other covered loss forced you to close for several months, how long could you keep paying rent and payroll? Business income coverage replaces lost income during covered closures. Make sure your limit and time period reflect a realistic recovery timeline.
9. Review Your Claims History and Loss Control
Look at any claims filed this year and what caused them. Taking steps to prevent repeat losses, like safety training, driver monitoring, or better security, can improve your risk profile and may help at renewal.
10. Organize Your Certificates of Insurance
Collect current certificates of insurance from subcontractors and vendors, and confirm they carry the coverage your contracts require. Uninsured subcontractors can end up as a claim on your own policy, including your workers’ comp.
11. Ask About Discounts and Bundling
A Business Owner’s Policy (BOP) that combines property and general liability may cost less than separate policies for qualifying small businesses. Paying in full, maintaining a clean claims history, and placing multiple policies with one carrier can also help with pricing.
12. Schedule an Annual Review with Your Agent
An insurance review takes less time than most owners expect, and it’s the best way to catch gaps before they turn into uncovered claims. Bring your financial projections, vehicle list, employee list, and any new contracts to the meeting.
Start the New Year Protected with Bon Insurance Agency
Our team works with businesses across Utah to make sure their coverage keeps up with their growth. We’ll walk through this checklist with you, shop multiple carriers when it makes sense, and help you head into the new year with confidence. Contact Bon Insurance Agency today to schedule your year-end commercial insurance review.
