Benefits of Interim Reporting in business insurance
All businesses have ups and downs. Sometimes you’re busy. Other times – especially as we face unprecedented times due to COVID-19 – business slows down.
That’s why managing cash flow is so important. According to a U.S. Bank study, 82 percent of businesses fail due to poor cash management.
To help with the dollars moving in and out of your business, you may choose to lease equipment instead of buying it, reduce your accounts receivables with mobile payment solutions or even keep a line of credit at the ready.
However, did you know that you may be able to work with your business insurer to manage cash flow through Interim Reporting?
How it works
Typically, insurance policies, like general liability and workers’ compensation, are paid annually. If that annual payment comes when your coffers are low, it can really hurt.
With Interim Reporting, you pay a deposit on your policy. Then, you report your exposures monthly, quarterly, or semi-annually and pay the subsequent premium for that time period.
Think of it as a payment program that is based on your business activity. Instead of one payment for the year, you pay as you go.
This type of reporting is one that many different industries can use to their advantage. Just about any business seeing a fluctuation in business activity, due to the pandemic or any other crisis, can use this to better manage cash flow.
BITCO’s Interim Reporting
BITCO is proud to have been meeting the insurance and financial stability needs of industries at the core of America's economy for over 100 years. We have been there to meet the needs of our customers through the best and most challenging of times with unique solutions like Interim Reporting since 1917.
To learn more about our free Interim Reporting payment plans, find a BITCO agent near you at BITCO.com.
For information purposes only. BITCO's blog content does not address all potential circumstances and is not a substitute for business, safety, or legal consultation.