A new year is a natural time for small business owners to pause, reflect, and plan ahead. While financial goals, staffing plans, and marketing strategies often take center stage, insurance deserves a place on that list as well. Making a few thoughtful insurance-related resolutions can help business owners better understand their coverage, reduce surprises, and stay aligned with how their business operates today.
Here are several practical insurance resolutions small business owners may want to consider as the year begins.
1. Review Your Current Insurance Policies
Businesses change over time. New services are added, equipment is upgraded, employees are hired, and locations expand or relocate. One of the most important insurance resolutions is simply reviewing existing policies to confirm they still reflect how the business operates.
A policy review can help identify:
- Coverage that may no longer apply
- Gaps created by business growth or changes
- Limits that may not align with current operations
- Policies that haven’t been reviewed in several years
This type of review is not about predicting losses. It’s about making sure the information on file is accurate and current.
2. Understand What Your Policies Actually Cover
Many business owners purchase insurance with good intentions but never take the time to fully understand what their policies include. Coverage terms, exclusions, deductibles, and limits can vary significantly by policy and carrier.
A helpful resolution is to ask questions such as:
- What types of losses are generally covered?
- Where do exclusions typically apply?
- How do deductibles work?
- Are there coverage limits for certain property or activities?
Improving understanding does not require becoming an insurance expert. Even a basic working knowledge can make it easier to identify potential concerns before a loss occurs.
3. Update Business Information Promptly
Insurance policies are often based on specific details about the business, such as:
- Number of employees
- Annual revenue
- Types of services performed
- Business location
- Use of vehicles or equipment
Changes in these areas may affect coverage eligibility or rating. A useful resolution is to notify your insurance professional when material changes occur rather than waiting until renewal.
Examples include:
- Hiring or reducing staff
- Adding new services or products
- Purchasing expensive equipment
- Moving to a new location
- Starting delivery or mobile operations
Keeping information current helps avoid misunderstandings later.
4. Revisit Liability Coverage
Liability insurance is a foundational component of many business insurance programs, but it is often misunderstood. General liability, professional liability, cyber liability, and employment-related coverages all address different types of risk.
A good resolution is to review:
- What types of liability coverage your business carries
- Which exposures are addressed by each policy
- Where coverage may not apply
This review can be especially important if your business interacts with customers online, stores personal data, provides professional services, or employs staff.
5. Review Business Property Values
Property insurance is commonly based on reported values. Over time, equipment upgrades, inventory changes, or rising replacement costs may affect whether those values are still accurate.
A yearly check-in can help confirm:
- Major equipment is listed correctly
- Inventory levels reflect current operations
- Property values have been updated if needed
Accurate values help ensure the policy reflects what the business actually owns, rather than outdated estimates.
6. Confirm Compliance With Contracts and Leases
Many businesses are required to carry specific types or amounts of insurance under:
- Commercial leases
- Client contracts
- Vendor agreements
- Loan documents
A practical resolution is to review these agreements and confirm insurance requirements are understood. This can help avoid compliance issues or last-minute coverage requests when contracts are renewed.
7. Create a Simple Insurance Record System
Another useful resolution is organizational rather than technical. Keeping insurance documents accessible can save time and stress when questions arise.
A simple system might include:
- Current policy declarations
- Contact information for your insurance professional
- Renewal dates
- Certificates of insurance issued to others
Having these materials readily available helps streamline communication throughout the year.
8. Schedule an Annual Insurance Check-In
Rather than viewing insurance as a once-a-year task at renewal, many business owners find value in scheduling a brief annual check-in. This conversation can focus on:
- Changes to the business
- Questions about coverage language
- Upcoming plans that may affect insurance
An annual review helps keep coverage aligned with business operations as they evolve.
Starting the Year With Clarity
Insurance resolutions don’t need to be complicated or time-consuming. Small steps, such as reviewing policies, asking questions, and updating information, can help business owners better understand how their insurance fits into the bigger picture of running a business.
As with any insurance-related topic, coverage availability, terms, and requirements vary. Working with a licensed insurance professional can help business owners review options and determine what may be appropriate for their specific situation.