I’ve been an insurance agent in New Jersey for almost 47 years now, and every November I start calling my business clients to schedule year-end insurance reviews. About half of them say, “Yeah, we should probably do that,” and actually follow through. The other half say they’re too busy and they’ll get to it after the new year.
Then January comes around and someone’s calling me because something happened—an employee got hurt, there was property damage, a customer’s threatening to sue—and their coverage isn’t what they thought it was. That conversation is never fun.
Look, I get it. You’re running a business. You’ve got a thousand things on your plate. Sitting down to review insurance policies isn’t exactly exciting. But spending an hour now can save you from a nightmare situation later, and I’ve seen enough of those to know it’s worth your time.
Review Your Business Insurance Before The New Year
Why November Actually Matters
Year-end is when things change for a lot of businesses. You’re hiring seasonal help, your revenue’s different from what it was last January, maybe you bought new equipment or expanded into a new location. All of that affects your insurance needs.
I had a client in Toms River who runs a small manufacturing business. Last November he mentioned casually that they’d bought some new machinery over the summer—about $200,000 worth. I asked if he’d updated his property insurance. Long pause. He hadn’t. We got it added, and good thing too, because they had a small fire in March that damaged some of that equipment. If we hadn’t had that conversation in November, he would’ve been underinsured by a significant amount.
Another client in Newark expanded his employee count from 8 to 15 throughout the year. His workers’ comp policy was based on the original payroll numbers. By December, his actual payroll was way higher, which meant he was going to get hit with a big adjustment at audit time. We recalculated mid-year, adjusted his policy, and spread the cost out so it wasn’t a surprise.
This is the stuff that matters, and November is when you’ve still got time to fix it before January 1st.
What Actually Needs Reviewing
When I sit down with a business owner for an insurance review, we’re going through everything. Not just glancing at it—actually reviewing it.
General liability is the foundation. Does your coverage limit still make sense for the size of contracts you’re doing now? Are you doing any work in New York or other states that wasn’t part of your original policy? I work with contractors who started doing jobs in NY without realizing their coverage didn’t automatically extend across state lines. That’s a problem.
Property insurance needs to reflect what you actually own. If you bought equipment, renovated your space, or increased inventory, your policy needs to know about it. I see this all the time—businesses grow but their insurance stays the same, and then they’re underinsured when something happens.
Workers’ compensation is based on payroll. If your payroll’s gone up—whether from raises, new hires, or overtime—your premium needs to adjust. Otherwise, you’re setting yourself up for a big surprise bill at audit.
Commercial auto, if you’ve added vehicles or drivers. Did someone get a DUI over the summer? Are you letting employees drive their personal vehicles for work? These things matter.
Cyber insurance is something more businesses need to think about. If you store customer information, process payments, or rely on computers for your operations, you’re vulnerable. I know it feels like one more expense, but I’ve watched ransomware attacks nearly destroy small businesses. It’s not just big corporations getting hit.
The Employee Situation
If your employee count has changed, we need to talk about it. Not just for workers’ comp, but for everything. More employees mean more risk in a lot of ways.
I have clients who hire seasonal workers every November and December for the holidays. They don’t always think to tell me, and then someone gets hurt and suddenly we’re scrambling to make sure they’re covered. Don’t be that person. Tell your insurance agent when your workforce changes.
Same thing with independent contractors versus employees. If you’ve been paying people as contractors who really should be classified as employees, that’s both a tax issue and an insurance issue. It needs to be addressed.
The NY and NJ Thing
If you’re doing business in both NJ and NY, your insurance needs to reflect that. New York has different requirements and different rules. Your New Jersey policy doesn’t automatically cover you in New York, and the penalties for not having proper coverage in NY are steep.
I work with a bunch of businesses that operate in both states—contractors, consultants, and delivery services. We make sure their policies extend to both and that they meet the specific requirements for each state. It’s not complicated to set up, but you have to actually do it.
What This Actually Costs
A year-end insurance review with a professional insurance agent costs you nothing. I’m not charging you to review your policies. What it might cost is adjustments to your premiums if your business has changed significantly, but you’re going to pay that anyway—either now when you can plan for it, or later when it shows up as a surprise.
Under-insurance, on the other hand, costs a fortune. If you have a claim and you’re not properly covered, you’re paying the difference out of pocket. I’ve seen business owners have to take out loans to cover gaps in their insurance. Don’t let that be you.
Just Schedule It
Call your insurance agent this week. If you don’t have an agent you trust, find one. Ask around—other business owners can usually recommend someone good. A professional insurance agent who knows your industry can catch things you’d never think about.
This isn’t something you do once and forget about. Your business changes, your risks change, and your insurance needs to change with it. An annual review isn’t optional—it’s part of running a business responsibly.
I’ve got clients all over New Jersey and some in New York. The ones who do regular reviews sleep better at night because they know they’re properly protected. The ones who don’t? They’re usually fine until they’re not, and then it’s a crisis.
Don’t wait until something goes wrong. Schedule your year-end insurance review now while you’ve got time to make adjustments before January. Protect your business properly.
You’ll thank yourself later.
