Re-Evaluation of Your Business Insurance Needs
As your business changes, your insurance needs could also change. A business policy should cover all aspects of the business operations, but as things change, it could leave a business vulnerable to coverage gaps. In addition to an annual review, any time a significant change to the business is made, the policy coverages should be re-evaluated.
When should a business re-evaluate its insurance?
If you have changed the goods that you sell or the services that you perform, it is a good time to look at your policy. When you add goods and/or services to your business offerings, you need to make sure that your current policies provide coverage for them. For example, if a clothing store wanted to also offer tailoring services to their customers on-site, this new exposure would need to be considered.
If you have sold or acquired vehicles, you will need to have your business auto policy updated to reflect this. If you have not needed a business auto policy before, but are now using vehicles in the course of your business, then you will need to make sure that you have the correct coverage to cover this increased exposure. For example, maybe you started offering delivery using your autos when before you used third-party delivery services.
If your business has experienced a lot of growth, or reversely, a slow down in business, you should evaluate your policies. Workers Compensation insurance is based on estimated payroll, and these numbers can be adjusted during the year to more accurately reflect your changing business. Policies based on gross sales can also be changed to ensure your business needs are reflected. A lot of growth means a larger exposure and Umbrella coverage may be desired for an extra layer of insurance.
If you are hiring employees for the first time you will need to provide Workers Compensation insurance. Depending on the circumstances, some independent contractors are considered to be employees, so you would need to have them covered by Workers Compensation as well.
If you have added equipment or made a lot of improvements, you will want to evaluate your policies. If there is an Inland Marine policy for equipment, you want to make sure it is up to date so that all of your equipment is covered. If you have increased your Business Personal Property or made a lot of improvements, you will want to evaluate either your building limit or your Personal Property limits to make sure that you have adequate coverage.
We always suggest that your policy gets a review every time you make a change to your business, or at renewal. Our agents will help you assess your current insurance needs to help you minimize coverage gaps.
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