Every business needs business insurance. And since you already prioritized it in your business, you may be wondering if the one-time fixture is enough. While you can choose to stay loyal to a company or brand, reassessing your business insurance policy is also essential.
To start, your insurance policy must cover your business growth. And as your business expands in scope, so must your business policy. This is why you must consider the insurance broker who will offer reliable yet affordable coverage near you.
Suppose you’re wondering when’s the right time to reevaluate your business insurance. In that case, here are signs and reasons to reassess your coverage and ensure you still have the right policy for your business.
1. You’re Expanding Your Business
Whether you’re growing by adding new customers or offering additional services or locations, expansion is a good reason to reevaluate your insurance. As your business expands, your coverage must include all your assets and scope of operations. This includes any buildings and equipment used for running the company. It’d be worth noting that the value of such assets must be considered when determining your insurance needs since you may need to repair, replace them, or make claims for injuries on the property.
2. Your Revenue Increased
It could also be time to review your business insurance if there’s an increase in revenue. This is especially the case considering policies are generally calculated based on your business’s total revenue. And the more revenue you earn and the more client accounts you manage, the more at risk your business can be.
You may be tempted to cut corners with your insurance as you don’t want to feel expenses are growing out of control or you’re not making enough profit to deserving new coverage, but this thought may end up costing you more when things go wrong. It’s, therefore, vital that you ensure your coverage is still appropriate for the size of your company and how much you make.
3. You’re Adding New Employees
Your business coverage must also keep up if you’re adding new employees. The more employees you have working for you, the more risk your business has—and this risk will likely require additional coverage and premiums from an insurer.
The process of adding or adjusting employees begins by looking at what kind of coverage is already provided by your insurance company and whether or not it covers other areas such as worker’s compensation. If there are gaps in coverage, then those gaps need to be addressed by either changing policies or adding supplemental policies to fit the needs of additional employees.
4. You’re Increasing Your Inventory
If you’re increasing your inventory, it’s essential that you also ensure that the additional stock is adequately covered. For example, it’s probably time to upgrade from a property damage policy to an entire business interruption policy if you have more expensive products than before. Inventory insurance can protect your business against fire, theft, and other losses. It covers the cost of replacing or repairing damaged goods, the drop in sales, and other inventory-related challenges.
5. Your Commercial Property Is Under Construction Or Renovation
Consider whether you need additional insurance if you’re planning to build a new building or renovate an existing one. If there’s no practical way to keep your business operational during construction and renovation, it may be ideal to purchase additional property coverage.
In addition, it’s also wise to ensure that all contractors working on the project are adequately insured and bonded. This can help ensure their liability is covered if something goes wrong during construction or renovation efforts (such as workers accidentally damaging neighboring structures).
6. You’re Acquiring A New Company Or Selling Assets, Or You Have A New Business Partner
Your insurance needs may also need to be updated if you’re planning to buy or sell assets and a company. Note that the risk profile of your portfolio can also increase significantly if you’re buying a new business and bringing it under your umbrella. And as such, it may be time to consider increasing your liability and property damage coverage limits before you open that new location or hire more employees if that’s the case.
Additionally, you may need to obtain additional excess liability coverage for any potential gaps in protection within existing policies with the previous owner(s). After all, insurance is all about safety, which is essential in protecting your business.
7. Your Current Policy Is Expiring, And You Want Better Offers For A Friendly Price
You can also reevaluate your business insurance if you want a better quote. Trying online companies or land-based insurance brokers are some ways to do this. You may even seek recommendations from your friends in the industry or any other expert. All you need to get started is to take quotes from several companies and compare the best of all that is presented to you.
Every significant change to your business requires insurance reevaluation. This can help protect you during an emergency and is one way to safeguard your company and its many assets. Reassessing your insurance policy can also be an opportunity to look and consider other agencies that could offer you better coverage for a friendly price.