Avoiding Business Insurance Renewal Troubles

Insurance Tips From LIBRIS

Today's independent bookstore owner has many issues to address in managing his or her business. Among the many deadlines needing attention is the renewal of business insurance, and it is not uncommon to be facing a termination date with little time to adjust, especially when terms and pricing can vary greatly from year to year. This can lead to some wrangling with the insurer and an upset to your budgeting process. Here are some proactive planning suggestions for bookstore owners to consider:

1) Your broker should call you approximately 90 days prior to the renewal date. Be prepared to provide the necessary data to rate your insurance. This includes anticipated annual revenue, changes in inventory and property values, and estimated payroll/employee counts for the coming year. Additional information such as past losses, security information on the building, training of employees, and financial information may be required if seeking quotes from other than your current carrier.

2) Instruct your broker to deliver the quote 30 - 45 days prior to renewal. Also, you can ask for quotes at different deductible levels or limits. This will allow adequate time to address any issues -- insist on an early quote!

3) Ask your broker to identify all coverage changes. It is typical industry practice to only reveal what the insurer determines as "significant" coverage changes. Ask questions about any coverage changes you do not understand.

4) If the insurance program you are considering provides for a dividend possibility, find out when dividends are paid and if they are based on the performance of the insurer as a whole, or some subset such as booksellers.

The LIBRIS insurance program pays dividends based on the results of participants within the group. Other insurance programs do so on the entire business -- which can include any industry.

After securing your insurance, follow up in 60 days if you have not received your policy. Once received, review it carefully. A recent study indicated that 50 percent of all insurance policies issued contain errors.

Editor's Note: The insurance tips contained in this article were provided by the insurance professionals at LIBRIS (League of Independent Book Retailer Insurance Services). LIBRIS is an insurance program exclusively for independent booksellers and is sponsored by the ABA and owned by ABA members.

You are invited to contact LIBRIS at (888) 694-8585 or visit www.LIBRIS.org with any questions you may have about your business property, liability, or workers' compensation insurance. The staff at LIBRIS will be happy to provide you with a free, no obligation insurance quote usually within one business day.