If you’re looking to expand your business or make any sort of changes then updating your business insurance policy is critical. As your business grows, your workforce and premises will likely develop, which calls for added security and protection.
This is where business insurance comes in, so even if you already have a policy, you’ll need to update it regularly to make sure your coverage corresponds with your company’s value. This means your policy should provide adequate protection against various kinds of losses you may incur. By doing this you won’t be underinsured in any way.
Without further ado, let’s discuss the five scenarios when a business should update its business insurance policy.
1. Hiring New People
Hiring new people is a key part of every business because you have to grow and also replace employees who are no longer with the company. Every employee working in your business should be fully insured, so if anything happens, you won’t be left with hefty fines, legal fees, and medical bills.
Your employees could possibly fall ill or get injured on the job, and unfortunately, no one can fully prevent it from happening. Hence, you must update your workers’ compensation policy when you hire new people.
2. Upgrading Your Office Space
Suppose you’re planning to upgrade, renovate, or even expand your current office space. Before you do so you must update your business insurance policy. This is because the value of your property is increasing, meaning your current coverage may not be sufficient in the event of a loss. As a result, you may end up having to break out your checkbook to pay for any losses that aren’t covered.
3. Product/Service Changes
Suppose you decide to offer additional services or products to your customers. In that case, you’ll need to make changes to your business insurance policy since you’re taking on new risks. In business, accidents happen rather frequently. Therefore, you never know if the product you’re shipping out contains any defects. A defect can potentially cause harm to your customer and make you potentially liable. To protect your company and your reputation you should be prepared for any mishap.
4. Adding Company Vehicles
Adequate insurance should be in place for all your company vehicles, as the chance of getting into an accident are high. Even if your employees are insured under their personal auto insurance policy, this won’t cover the vehicle if it’s being operated for business use.
In this case, you’ll need commercial auto insurance. This policy will protect you in the event your employee is at-fault in an accident while driving their car for business use. So, if you’re replacing a company vehicle or purchasing a new one then you need to update your business insurance.
5. Increased Revenue
If your company’s profits are increasing then it’s a good time to update your business insurance policy. As you grow over time so do your assets. That means your current coverage may not be covering your new assets like you want them to.
Running a business is not easy as it involves many risks. Having adequate business insurance that covers all aspects of your company is completely necessary. Even a small change or expansion in your business calls for a review of your business insurance policy. By doing this you will protect your business, employees, and your reputation in the event of a loss or damage.