As the calendar year winds down, most business owners are focused on closing the books, preparing for tax season, and planning for growth in the year ahead. But one task often overlooked at year-end is reviewing your commercial insurance policies.
At Ensign Partners, we offer clients advice and recommendations on insurance coverage for every aspect of their business and personal lives. Insurance is an integral part of our consultant services, helping clients coordinate their insurance plans with legal, finance, and tax interests. We help business owners and high-net worth professionals to create comprehensive, coordinated strategies that integrate these diverse and critical aspects to achieve business success and personal wealth and security.
Businesses evolve over time: new hires, expanded operations, increased revenue, new products or services, or even supply chain shifts. All of these factors change your risk profile. While some companies experience dramatic growth or change, most of the time, change happens gradually. While you're focused on managing that growth, it’s easy to forget that coverage is not automatically growing with your business. If your coverage hasn’t kept up, you may be left exposed when you need protection most.
Closing out the year and undertaking housecleaning tasks for your business provide a good opportunity to review insurance. A year-end policy review ensures your coverage matches your business reality, prevents costly gaps, and may even uncover opportunities to reduce premiums.
1. Review Coverage Limits Against Current Operations
Ask yourself: If the worst happened today, would my current policies fully protect my business? This applies to:
- General Liability: Do limits match your current contract requirements and customer obligations?
- Property Insurance: Has the value of your building, equipment, or inventory increased this year? Rising costs of materials and labor may leave you underinsured.
- Business Interruption: Does your policy provide enough income replacement if operations were shut down for weeks or months?
2. Check for Gaps Created by Growth
Make sure your policies reflect changes such as:
- New locations, warehouses, or offices.
- Expanded service areas, delivery zones, or fleet vehicles.
- Increased payroll or number of employees.
- New products or services introduced this year.
If you added or expanded operations but didn’t update your policies, you may be unknowingly underinsured.
3. Evaluate Employment-Related Coverage
Employees are one of your greatest assets, but also one of your greatest potential risks. Review:
- Workers’ Compensation: Is payroll up to date, and does it cover remote workers if applicable?
- Employment Practices Liability Insurance (EPLI): With evolving labor laws, this coverage is increasingly important to protect against claims of discrimination, harassment, or wrongful termination.
- Benefits Plans: Ensure your employee benefits are compliant with current laws and aligned with the needs of your workforce as it grows.
4. Update Cyber and Data Protection Policies
Cyber threats are no longer limited to large corporations; small and mid-sized businesses are prime targets because they are vulnerable and less able to respond swiftly and robustly. If you’ve adopted new technologies, expanded e-commerce, or store sensitive client data, confirm that your cyber liability coverage is complete. Look for:
- Coverage for ransomware attacks and business interruption.
- Breach notification and customer credit monitoring costs.
- Third-party liability if vendors or partners are impacted.
This task is in addition to taking steps to protect and secure your data and IT systems.
5. Review Contracts and Vendor Requirements
Many commercial contracts require specific insurance coverage and minimum limits. At year-end, confirm that your policies:
- Meet all current client or vendor requirements.
- Include proper additional insureds and updated endorsements.
- Are renewed and in place for early 2026 obligations.
Failure to maintain coverage could void a contract or expose your business to legal risk.
6. Analyze Deductibles and Premiums
Rising premiums are a concern for every business. A year-end review is a good time to:
- Reassess deductibles and weigh the advantages of adjusting them.
- Compare premium increases to industry benchmarks.
- Identify opportunities to bundle policies or remove unnecessary riders.
- Solicit quotes from competing insurers.
7. Coordinate with Other Planning
Insurance planning doesn’t stand alone; it should integrate with your legal, financial, and tax planning. For example:
- Are entity structures aligned with policyholders?
- Are buy-sell agreements properly funded with insurance?
- Are premiums structured to maximize deductibility and tax benefits?
When insurance is reviewed in isolation, important connections to other aspects of your business are often missed.
8. Document and Plan Ahead
Finally, keep a record of your year-end review and build a plan for the coming year:
- Document updates and conversations with your broker.
- Note renewal dates, premium schedules, and coverage changes.
- Set reminders to revisit policies mid-year as your business continues to evolve.
The Ensign Approach
Insurance is just one piece of the bigger puzzle. That’s why Ensign Partners doesn’t just review insurance policies; we integrate risk management into your broader legal, financial, and tax strategies. The goal is comprehensive protection that grows with your enterprise and keeps you on top of every aspect of your business.
As you close out the year, don’t let your insurance lag behind your success. Contact Ensign Partners today to schedule a coordinated year-end policy review, and step into 2026 with confidence that your coverage is aligned, efficient, and complete.