Why Playing the Long Game With Your Business Insurance Can Pay Off
Grow Your Business, Not Your Inbox
Navigating business insurance takes a lot of resources. There’s the time and energy expended on planning for an annual renewal, and budgeting is more difficult when you can’t predict the rates of a renewed policy. A new year can bring new costs that you can’t always plan for, no matter how much time you’ve spent glued to your computer preparing. But there’s another option for businesses looking for a stable, time-saving, and cost-reducing alternative: 3-year business insurance packages.
Unlike traditional business insurance policies, which are renewed on an annual basis, these policies are written on a three-year term. Consider The Cincinnati Insurance Company’s 3-year policies. Cincinnati is a well-established provider in the industry, having earned an A+ insurer ratings from A.M. Best Co. and S&P Global Ratings. Continue reading to learn more about 3-year policies and the key benefits businesses stand to gain when considering one.
3-Year Policies Give Companies Operational Freedom
Renewing a business insurance policy isn’t exactly a labor of love for most companies. Every year, businesses spend human and financial capital on an insurance renewal, often repeating administrative processes and information-gathering from the prior year.
By choosing a 3-year policy, you’re rewarded with the most valuable gift of all: time. Instead of hours spent processing annual renewal applications, you can use that time to work on business operations. In lieu of days used to analyze next year’s insurance policy, you can invest time in claims assessment or risk prevention. There’s also less anxiety around the renewal process because there are 24 more months to plan.
3-Year Insurance Plans Offer Increased Stability
With a traditional business insurance plan, companies can expect their rates to change from year to year. Insurance market fluctuations can impact rates quickly and sharply. For 3-year policies, the expectation is different. In Cincinnati’s plans, many insurance rates are locked for the 3-year duration of the policy, which is a real source of stability. Businesses can better budget and organize for their long-term success when they know what the immediate future will look like.
Note that your premiums may still increase or decrease based on developments within the business itself even with Cincinnati’s 3-year policy – it’s the underlying rate that stays the same. Your premiums may change if your business relocates, if there are alterations to your insured premium basis, such as total sales or payroll, or if the nature of your business itself evolves.
Three-year insurance policies are available in most states for many different types of coverage. To see if your business qualifies for this type of policy, speak with an independent agent representing Cincinnati Insurance.
So What Will You Do With Your Extra Time?
Insurance packages aren’t one-size-fits-all. You can help meet your business’s unique insurance needs by choosing a 3-year-package. Once you have your new plan in place, you can spend the time you previously spent on annual renewals focused on the work you really want to do. It’s your business, and your policy.
Coverages described here are in the most general terms and are subject to actual policy conditions and exclusions. For actual coverage wording, conditions and exclusions, refer to the policy or contact your independent agent. Ratings are under continuous review and subject to changes and/or affirmation. See each rating agency’s website for the latest financial strength ratings. Property and casualty coverages may be provided by The Cincinnati Insurance Company or one of its wholly owned subsidiaries, The Cincinnati Indemnity Company, The Cincinnati Casualty Company or The Cincinnati Specialty Underwriters Insurance Company. Each insurer has sole financial responsibility for its own products. Not all subsidiaries operate in all states. Location: 6200 S. Gilmore Road, Fairfield, OH 45014-5141.