5 Times to Update Your Business Insurance
As a business owner, you know how important business insurance is. However, many companies neglect to update their coverage.
As your company grows, your insurance needs will change. Reviewing your coverage regularly—usually once a year around the time your coverage renews—can ensure your policy covers all of your assets, employees and leadership teams.
Your insurance agent also recommends that you review your coverage in the following situations:
1. You’ve added physical assets. Maybe you’ve added new furniture in a waiting room, or you’ve purchased new computers for members of your staff. Ensuring that your business insurance covers these investments is essential. Don’t overlook the value of insuring these assets.
2. You’re growing and adding employees. Your business insurance policy is based on your business’s size, and your coverage should grow as your company does. For example, if you hire more employees, there will be a greater need for an expanded workers’ compensation policy. You may even need to add a workers’ compensation element to your policy if you are a small business and do not have one currently.
3. You’ve faced a liability claim. Most basic business insurance policies do not adequately cover liability risks. Think about adding to your policy to ensure additional coverage and higher liability limits. This especially applies if you have had prior claims.
4. You’ve added a board of directors. A board of directors is a great way to propel your company forward by bringing in professionals to lead your business to success. It is helpful to insure a group like this with errors and omissions (E&O) insurance, which helps protect board members from various risks.
5. You’re expanding services. As you change your business plan by adding new services and products, ask yourself if these changes come with any further risks. For example, if you are now offering consulting services, your employees may need to drive to clients’ locations, meaning commercial auto insurance might be a good investment.
If you’re thinking of updating your business insurance, be sure to let your insurance agent know. They will help you find the best policy to ensure your company continues to grow and prosper.