Without comprehensive business insurance coverage, you may be facing a significant risk of irreversible loss if you incur property damage, theft of assets, liability lawsuits, and more. Even if you had sufficient protection a couple of years ago, a lot might have changed since then. Therefore, you may need to take a fresh look at your business insurance plan to address any coverage gaps or minimize costs where possible.
Here are some scenarios that might compel you to revisit your commercial insurance coverage and modify your policies accordingly.
1. Change in Staff
It’s time to revisit your insurance plan if your workforce has increased or otherwise changed substantially. That’s also true if you just hired staff for the first time. The law requires you to have worker’s compensation insurance once you have a certain number of employees. You may also need to review your liability policy after adding personnel. Similarly, don’t forget the requirement to offer health insurance and other benefits once your company employs over 50 full-time workers.
2. Change in Company Cars or Vehicle Use
Your personal auto policy may not protect you in case of accidents involving the commercial use of your car. If you expand your fleet, then you need to update your commercial policy accordingly to cover any new cars for business operations.
3.Change in Goods or Services Offered
Liabilities can vary based on the different products you sell from time to time, and new goods or services may introduce risks that your current policy doesn’t cover. As such, you may need to re-evaluate your business insurance if:
- You’re offering new types or categories of products
- You changed or modified the actual product from what you originally offered
4. Business Growth or Decline
The valuation of your business determines the amount of coverage you need as well as the compensable amount in the event of a loss. Your insurer will typically consider your revenue when working out your coverage requirements. As such, a sustained increase in sales warrants an upward review of your business insurance coverage.
5. Change of Assets
Be sure to review your commercial insurance policy after purchasing new assets, such as equipment or technology. Unless the new valuable items are included in your policy, you may have to replace them out of pocket if you lose them in a covered event.
6. Assumption of More Risk
If you take more risk, you’ll need to inform your insurance agent about it. You must re-evaluate your new risk profile so that it’s reflected in your insurance coverage and premiums. For example, changing your business location or building impacts your risk and insurance premiums.
These are some of the reasons why re-evaluating insurance may be necessary to update your policy and ensure your business has maximum protection. Contact the experts at Pittman Insurance Group, LLC for all your coverage needs. Our dedicated team is eager to assist with all your insurance questions and needs.