Why is it important to review insurance coverage annually?

Reviewing insurance coverage annually is crucial to ensure that it aligns with the changing needs and operations of a business. As businesses evolve, they may experience growth, changes in risk exposure, or modifications to their operational activities. These factors can significantly influence the coverage required to protect the company adequately.

An annual review allows businesses to identify any gaps in their insurance that may have emerged due to changes in staff, physical assets, revenue generation, or regulatory requirements. It ensures that the insurance policy remains relevant and effective, providing the necessary protection against potential risks that could impact the business.

Adjusting policies to better fit the current state of the business is essential for effective risk management, which underscores the importance of conducting these reviews regularly.