When Must You Re-Evaluate Your Business Insurance Needs?

Like having a business insurance policy, reviewing it regularly to ensure whether it meets your current coverage needs is crucial. Mostly, business owners buy a policy and forget about it, ending up staying uncovered for some incidents or risks. As your business evolves, changes, and expands, re-evaluating your insurance needs and customizing your policy accordingly will help you stay covered at all times while minimizing losses resulting from unfortunate incidents.

Instances That Call for Re-Assessing Your Business Insurance Needs

    1. Your Business Is Growing

      If your business grows, it is essential to review and update some coverages, including:

      • Business interruption coverage to mitigate compensation shortfalls and replace lost income after a covered peril.

      • If you are buying more vehicles, increase your auto coverage limit to cover the new ones.

      • If you are moving to a spacious office, ensure your property coverage meets its increased value and risks.

    2. You Are Hiring More Employees

      You may hire more employees to meet your current business production needs, so update your workers’ compensation coverage accordingly. Mostly, you need to review your deductible and maximize the coverage limit for extensive protection against workplace accident-related liabilities and lawsuits.

    3. Your Business Experiencing a Lull

      When your business experiences downtimes where profits are lower than expected, you can temporarily cut down unwanted coverages to save on your premiums. Otherwise, you can increase your deductible to lower your monthly premiums.

    4. You Are Adding New Products or Services

      Adding new services or products can bring in additional risks, so update your general, product, and professional liability coverages to stay covered against negligence claims and related lawsuits. If you are providing new online services, consider updating your cyber liability coverage to get reimbursements for data breaches and cybercrimes.

    5. You Are Spending More on Premiums

      If you feel like spending more on your business insurance premiums, you can increase your deductible to save on them.

However, if you don’t want to change your deductible, try these alternatives:

    • Avoid filing small claims
    • Keep your policies up to date
    • Combine policies to get discounts
  1. Your Coverage Is Basic

    Every business faces unique risks and challenges depending on its type, size, and scale of operations. Therefore, rather than having a basic policy, customize your business insurance with industry-specific coverages to meet your unique needs.

  2. You Don’t Remember When You Have Updated Your Coverage Previously

    If you don’t recall the last time you did update your business insurance, now is the time to re-evaluate your business insurance needs, as your business might have come a long way with increased growth, improved sales, advanced infrastructure, etc. Therefore, updating your coverage accordingly is crucial.

Protect Your Business with Pittman Insurance

Reviewing your business insurance needs will help you determine what additional endorsements you need to stay adequately protected.

Whether you are looking for a comprehensive business insurance policy or updating it according to your current requirements, contact us today here at Pittman Insurance Group, LLC, and we will assist you.

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