A comprehensive business insurance policy is a must for any business owner. But under what circumstances do you need to take another look at that policy and make important adjustments? Here are some instances when it would be a good idea to revisit your business insurance plan and add to, or change, your coverage.
- Change in employees: Has your staff grown or changed substantially? Are you hiring employees for the first time ever? Make sure you have the necessary worker's comp and liability insurance to cover your staff. And remember, if your business hires over 50 full time workers, you are obligated to offer health insurance and other benefits.
- Change in vehicles or vehicle use: If you add one or more vehicles to help run your business, make sure you have a commercial policy that covers business use. If an accident happens during the course of business operations, a regular auto policy may not protect you.
- Change in goods or services: If your business has evolved to the point where the actual product or service you're offering is different from your original business plan, it might be time to make some adjustments to your insurance policy. This also applies if you're adding goods or services that you didn't initially offer.
- Business is booming or slowing down: Your insurance coverages are based on a valuation of what your business is worth, and the revenue you are or are not making. If your business's income has taken off, or taken a hit, you might want to make some changes so that your insurance policy is giving you the right amount of coverage.
- Your assets have changed: If your business has acquired any new assets; whether it be equipment, land, materials, technology, or anything else. Act right away to make sure these valuable items are covered, before it's too late.
- You take on more risk: The other major factor insurance companies use to determine your coverage and premiums is how much risk you're carrying. If your business has taken on more risk, it's important to let your insurance agent know and re-evaluate your coverage.
- Review your policy: It's always a good idea to thoughtfully review your business insurance coverages when they are up for renewal. Make sure your insurance really matches your unique situation and that the coverage amounts make sense. In addition, you should always read the fine print and be sure to understand your policies in detail, so that you understand the circumstances under which you'll be covered, and what exclusions you need to know about.
The bottom line... Having a strong business insurance policy is critical to your peace of mind and to protect your business in the long term. If your business undergoes a substantial change, you may want to revisit your insurance coverage to make sure you stay protected. When in doubt, contact your insurance agent for guidance and to keep your policy up to date.
For any of your business insurance questions, call or contact Arndt-McBee Insurance Agency today.