It is a good idea to review your business insurance coverage at least once a year. This is especially important if you’ve had any major changes in your business operations. You may need to change your policy limits, add coverage or change your business policies in some other way.
Here are some key events that may mean you need to update your insurance.
Employee changes
Have you expanded your workforce or perhaps laid off employees during the year? Your workers compensation policy may need updating. Perhaps you will need more coverage than just the minimum if you now have more employees.
Expanding operations
Have you expanded your operations or added new products and services? This could affect the amount of professional liability coverage you need as well as property coverage if you’ve added on to your building. If you have made a very large expansion, you could even need umbrella coverage to give you added protection above your policy limits.
Ownership changes
Did you have a partner that left your company or passed away? The named insureds may need to change on your business policies. Likewise, if a new partner has come on board, he or she will need to be added to your policies.
You’ve downsized
Downsizing your business means you may be able to reduce your policy limits for property coverage or liability coverage.
New equipment or commercial vehicles
If you’ve added any equipment used for manufacturing goods or providing services, it should be listed on your commercial property policy. Likewise, vehicles you’ve purchased for business use must be added to your commercial auto policy.
Even if you haven’t made any significant changes to your business, it is a good idea to review your business coverage once a year with an insurance professional. A pro may even be able to find ways to save you money or better protect your business.
