Having business insurance is essential, but many companies do not spend enough time updating their coverage. As your company grows and changes, it becomes increasingly important to modify your business insurance policies to match those needs. In fact, it is often wise to take a closer look at those policies at least once a year, usually around the time that your coverage renews. Here are five instances when you may need to make some changes.
#1: You’re Growing and Adding Employees
Business insurance needs to cover your business based on its size. For example, your workers compensation policies need to reflect the number of people you bring on board. Additionally, if you are a small business, it may become a requirement to have workers compensation coverage at some point, based on your state’s laws.
#2: You’ve Added Hard Assets
You’ve upgraded your computer equipment. You’ve added new furnishings. As you make these types of investments, the amount of coverage you need is also likely to rise. Don’t overlook the value and importance of ensuring your business insurance offers enough coverage for these assets.
#3: You’re Expanding Services
You may be offering a new service or product. As you make changes to your business plan, you also need to address new risks you may be facing. For example, you may be offering a consulting service. This may mean your employees need to drive to your clients’ locations. If that is the case, you may need commercial auto insurance.
#4: You’ve Faced a Liability Claim
Liability risks are very big components to business insurance, but basic policies are often just not enough. It is often necessary to add additional coverage and higher liability limits, especially if you’ve already had to settle a claim previously.
#5: You’ve Added a Board of Directors
As your company grows, it may be time to bring in more professionals to lead it. At this point, it becomes necessary to consider errors & omissions Insurance, which helps protect board members from risks.
Is it time to update your business insurance? Keep your insurance agent in the loop as your company grows and changes. It could mean updates to your policy to keep your company safe.
Ready to assess your coverage? Call Dave Millet Insurance Agency for more information on business insurance.