The new year is a time for new beginnings, new ideas, and, of course, New Year’s resolutions. Making resolutions might seem trivial at a New Year’s Eve party. But it’s not! Every new year is an opportunity for small businesses to assess their strengths and weaknesses, develop strategies to address challenges, and refresh their financial protections. Here are three things you can resolve to do to protect your business in the coming year.
1. Tackle postponed maintenance projects
Due to labor shortages and other obstacles, many businesses have postponed much-needed maintenance and repairs on their buildings. However, failing to perform proper maintenance exposes employees and property to a greater risk of damage. It also increases the likelihood of accidents and workplace injuries.
Inspect your roof, pipes, and drains. Even small leaks can lead to costly water damage over time. And those caused by negligence or lack of maintenance won’t be covered by insurance.
Check electrical systems and appliances and replace or repair them if they aren’t working properly. Equipment breakdown insurance doesn’t cover negligence or wear and tear, and some insurance contracts require that scheduled maintenance be performed and documented. If you’re not meeting the standards, talk to your agent and insurer about what you need to do to rectify the situation.
Look for any holes that may have formed in recent months to ensure rodents and other pests can’t invade your building. Damage from infestations is not usually insured.
2. Update your emergency plan
Even if your company has developed a comprehensive emergency plan, you should update it at least once a year. Make sure contact information is up-to-date and that the latest threats are addressed appropriately. Risks such as cyberattacks, wildfires, and supply chain disruptions are constantly evolving, and the measures you need to survive them may change as well.
If your company hasn’t developed an emergency plan, now is the time to do so. Organizations such as the Small Business Administration (SBA), the Insurance Information Institute (III), and the Federal Emergency Management Agency (FEMA) have resources available. You can also contact your insurance agent or broker to help you develop the right plan for your business.
3. Review Your Insurance Needs
As your organization adapts to changing consumer demands and emerging technologies, your business insurance needs may also change. Take advantage of this time at the beginning of the year to schedule a review of your property and casualty insurance policies with your insurance agent. They can help ensure there are no gaps in your protection.
For example, small businesses are increasingly reliant on technology to operate, but many lack cyber insurance policies. A data breach or phishing attack could leave your business vulnerable or temporarily disrupt your network, resulting in lost revenue.
Reconstruction costs have also risen considerably in recent years, making property repairs more expensive. Have your insurance limits kept pace with inflation?
With a few key steps, you can protect your business from devastating financial losses and make this a great year. Consult your insurance advisor for help with risk management and business insurance. They can help you recover quickly if your business suffers a loss.
