When It’s Time to Revise Your Business Insurance Coverage
Thinking of updating your business gadgets and electronics? This would be one instance where ensuring your business insurance coverage can maintain them.
Starting a business requires a vast range of skills and knowledge. It mandates that a new business owner understands their market, business laws, and how to manage their finances.
Business owners should also have extensive knowledge of business insurance. Business insurance, like homeowner’s insurance, protects your assets. It helps your business in the event of a disaster, financial loss, and in some cases when fraud occurs.
There are many types of business insurance coverages. The most basic insurance policies needed are general liability and workers compensation if you have employees. Property insurance and business income insurance are also policies needed by business owners.
Having these insurance policies allows you to operate successfully and with peace of mind. In a world where accidents happen and the economy shifts, having insurance could mean the difference between keeping your business open and filing bankruptcy. Simply put, business insurance reduces your risk and helps you to focus on growing and maintaining your business.
However, it’s important to revise your business insurance in various circumstances. So, when is it important to update your business insurance policy? Read on to find out.
When to Update Your Business Insurance
When purchasing business insurance, it’s important to shop around for high-quality coverage. It’s also vital that you get enough coverage to cover all of your assets. However, your asset value is likely to change over time.
The structure of your business is also likely to change which could call for additional coverage. Explore the following instances to adjust and update your insurance policy, so you can rest assured that your business is fully covered.
1. Increased Revenue
If your business has significantly increased, then it’s time to revisit your coverage. As your business grows, so do your assets. If your initial policy covers less than your current assets, then it’s time to update your policy.
This is extremely important if a problem arises that requires an insurance claim. You want to ensure that your business is properly covered so that you can resume business as usual without taking on a significant loss.
2. Changes in Employees
As a business owner, you’re likely prepared for employees to come and go. But, did you know that you need to immediately update your worker’s compensation policy as these changes occur?
Workers compensation protects your employees and your business if an employee is injured on the job. This policy also covers your business when an employee becomes ill while working.
Another reason to update this policy is that it’s required by law. Failing to update this policy could result in penalties and fines. Facing these fines could mean a significant loss to your business or even bankruptcy.
3. New Equipment
As a business grows, owners are likely to purchase new equipment. This equipment increases the value of your business, which means you’ll need to upgrade your policy.
By upgrading your policy, you protect your equipment if damage or theft occurs. The policies you need to update are your commercial property and/or equipment breakdown policy. The updated policies will cover the increase in the value of your new equipment allowing you to operate smoothly.
4. Product/Service Changes
Adding a new product or service means that your company is taking on additional risks. Taking new risks is a reality for business owners, but you still need to have adequate coverage.
Consider what the product or service is, and then ask your insurance agent what they recommend. You may need to add an additional insurance policy or upgrade your initial policy. For example, if you are carrying a new product, then you may want to consider adding product liability insurance.
5. Transportation Adjustments
Every vehicle your company owns needs to be properly insured. However, if your employees also use their personal vehicles for business, then you may need additional coverage.
For example, if an employee gets into an accident when driving on a work-trip, then they may be able to sue. To avoid taking a financial loss, you’ll need to have proper insurance in place to protect your business. Speak with your insurance agent about employees using their personal vehicles to determine what coverage is best for your business.
We live in a Digital Age where our businesses can come under scrutiny. We may also make mistakes when marketing our business. To cover both of these needs, you can add on Personal and Advertising Injury to your business owner policy.
This policy covers your business in case of libel, slander, or copyright infringement. While no business owner wants to imagine the worst, it’s a good idea to have this policy just in case.
7. Building Upgrades
Upgrading your building or moving to a new location are exciting milestones. Renovating a business workplace is also a worthwhile endeavor.
But, when these changes occur, your property value increases. This means that you’ll need to update your current policy as soon as possible. Doing so ensures that you’re covered for the maximum value you need so you don’t have to pay for losses out of pocket.
So, if you’re considering making any of these changes, speak with your insurance agent. Let them know what your building plans are so they can begin to upgrade the policy as needed.
8. New Computer Systems
In the Digital Age, we are more vulnerable to cyber attacks. If you upgrade your computer system, then it may be time to add on cyber liability insurance. Cyber liability insurance covers your computer systems and electronic data if a cyber attack or damage occurs.
Purchasing the Right Business Insurance
To purchase the right business insurance you need to understand your company’s needs. You also need to find a quality insurance agent to guide you through the process.
It’s important to take stock of your business assets every three to six months. By doing so, you can ensure that you’re properly covered. If your business is maintaining its size, revenue, and employees then take stock of your insurance policy at the time of renewal.
Need to purchase business insurance from a reputable business insurance agency? Live in Allentown, PA? Contact us today to learn more about business insurance coverage and how to reduce your company’s risk.