How Often Should I Update My Business Insurance Coverage?
|By| November 15, 2022|
Business insurance coverage should change as your business evolves. No matter if your company is moving to a new location, experiencing a burst of growth, or any significant change, you should evaluate your insurance coverage. As needs change, so do the risks. Make a plan to review your business insurance policy at least once a year and every time there’s a significant change. Taking a proactive approach like this can help ensure you have the coverage you need to protect your company in the event of a disaster.
The following list outlines various circumstances when you should review and update your business insurance coverage:
As your business grows, so will your revenue fluctuate. If you are experiencing an increase in revenue, it's critical to update your insurance policy to ensure you are covered if you need to place a claim. Without the appropriate policy, you may experience business interruption or unnecessary loss.
Having employees enter and leave employment is not uncommon. However, as a business owner, you are responsible for maintaining your worker's compensation policy when changes occur. Without an accurate, up-to-date policy, you may face fines or penalties.
Adding New Equipment
As a business grows, owners likely purchase new equipment, which can increase the value of the company. If you have inadequate business insurance coverage, your existing insurance policy may not cover new equipment for damage or theft. Also, computers and systems are vulnerable to cyber attacks in today's digital age. You may consider adding cyber liability insurance to protect your computer systems and digital data if an attack or damage occurs.
Introducing New Services or Products
Adding new services or products to your portfolio means your company is taking on additional risk. For example, a business could be held liable if a service isn't performed correctly or if a product causes damage to customer property. Having the correct type of liability business insurance coverage is vital for a company's long-term success.
Make Sure You Have the Right Business Insurance Coverage
If you are unsure if it's time to update your business insurance coverage, contact Cell Brokerage. Working with an insurance broker can help ensure you have the right coverage for your business and maximize your policy dollars. At Cell Brokerage, we have the experience of helping companies of all sizes make sure they are protected.
For more information, contact us today at 844-440-4222.
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