When Should I Update My Business Insurance Policy?
The “Powers That Be” have declared June 28 as National Insurance Awareness Day! That means it’s a good time to review your insurance coverage. Everyone should examine their personal insurance policies for needed updates. If you’re an entrepreneur, though, you need to take an extra step soon and review your business insurance policy. Ask yourself a few questions…
Has your business expanded or downsized in the last year?
If you moved to a smaller office or facility, then you may need less property coverage. Or, if you have downsized your staff, you will need less workers’ compensation. Similarly, if you have moved to a bigger space or gained more employees, you will need more protection. It’s always best to keep your Hibbs agent up to date as your business fluctuates.
Has the structure of your business changed?
From sole proprietorships to limited liability companies to S-corporations—every type of business has unique insurance needs. Suppose your company has changed from one type to another. In that case, you’ll probably need to make business insurance policy adjustments, as well.
Have you upgraded?
A newly renovated office space could cost more to replace than an older version—just like new equipment could cost more in insurance claims than outdated machinery. Always make sure your coverage limits exceed the cost of your assets. You also need to add recently purchased vehicles to your commercial auto insurance policy. Basically, every time you invest in your business, talk to your insurance agent and see if you need more coverage.
However, improvements can save money, as well. If you have taken steps to make your workplace safer—such as hiring a risk management consultant—then you might earn discounts on your premiums. It’s always a good idea to check.
Have your products or services changed?
New products and services could expose your company to unknown risks, so talk to your agent about whether increased coverage is necessary. You might also request insurance advice before officially adding the new product or service. It’s best to know exactly how much expansion will change your business insurance policy.