Did you know that there is a way to avoid going back to your insurance company year after year for basically the same policy? Longer-term policies could help you save time and money that can be reinvested in your business. However, longer-term policies may not be for everyone’s particular financial situation. Below are some pros and cons to help you decide.
If you’re willing to be locked into a multiyear commitment, the most significant pros are lower premiums, locked-in rates and saving time. They provide the insurance company certainty that there will be a commitment for a certain amount of time. Given the commitment, it provides the insurance company the opportunity to lower premiums. It provides you with the assurance that your rates won’t rise during that time period. A longer-term policy also saves you the time and hassle of yearly information gathering and renewals.
The most significant con is that the payments will be due even if your business experiences a decline in revenue or your industry as a whole experiences a downturn. If your business needs to leave the property, payments would still be due. Longer-term policies are great if you know things will be about the same for the next three years but may not a good fit if your situation is changing or fluctuating.
A number of factors go into deciding if a longer-term policy is right for your business. I’d be happy to go over them with you and help you make the decision that’s best for you. Call or email me today.