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Michigan Farm Bureau Family of Companies
 

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Special Announcement: The Farm Bureau Family of Companies is dedicated to providing for and protecting Michiganders. To this end, we are encouraging all policyholders and members to review their coverage limits on their insurance policy(ies). With recent increases in the cost of goods, services, and construction, we want to do our part to ensure Michigan residents are properly protected. Please contact your local agent if you believe that your coverage limits may need to be increased.

Insurance Reviews: The Importance of Annual Evaluations

Insurance audits help identify changes in risks. Business owners should review their insurance coverages annually.
Date Posted: July 9, 2021

Annual Insurance Reviews

As industries continue to evolve, business owners should consider reviewing insurance coverages annually. An insurance audit will help identify risks that could severely impact your bottom-line should an unexpected loss occur. The primary areas you should re-evaluate during an annual insurance review are: 

Business Interruption Insurance
Insurance Protection of Executives
General Liability
Property Insurance
Workers Compensation

Business Interruption Insurance: You may have enough insurance to rebuild or replace equipment after a disaster, but have you considered your business operating expenses? You could extend your coverage with Business Interruption Insurance to cover unexpected losses like a loss caused by your company’s vendors or suppliers.  

Insurance Protection of Executives: If you have yet to purchase Employment Practices Liability insurance, remember, company growth increases your risk to potential claims. Similarly, if you sponsor a 401(k) plan, and an employee feels the investment was mismanaged, you need to have adequate Directors & Officers Liability to handle such claims.  

General Liability: How much liability protection does your company currently require? The amount of coverage you purchased previously may have been adequate at the time. Since then your business or liability exposure may have changed and may require new coverage. 

Property Insurance: Business property evaluations go up and down as commercial real estate values fluctuate. You could now be paying too little or too much for the necessary coverage. The same applies to your equipment, machinery, and your inventory.  

Workers Compensation: The premium you pay is dependent on the roles of each employee. If employee roles have changed relative to how business has evolved, you'll want to review this as it could impact your premium rates. 

 

Contact an agent today to schedule an annual insurance audit and safeguard your business from potential risks. You might discover changes in your business have exposed you to new risks or find coverages you're paying for that are no longer relevant.  

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