Every business is unique, which is why there is no one-size-fits-all solution when it comes to your insurance coverage. You need to ensure you have the right coverage for your business. In fact, some business coverages are required by law, like workers' compensation. Without business insurance, you may end up having to pay out-of-pocket for costly damages and lawsuits against your company.
Over time, the structure of your business may change, which could require additional coverage. It’s important to revise your business insurance as your business changes and we’ve outlined a few situations for when you may consider updating your coverage:
When you upgrade your workspace or location
Whether you own or lease your space, you should be insured for the cost to rebuild and replace all of your assets, so it’s vital that any business insurance policies covering your existing premises are updated accordingly.
Here are some scenarios and reasons in which you would change or update your business insurance:
- Renovating or extending the building
- Purchasing new equipment and machinery, fixtures and furniture
- Changing your business address, including moving to a different sized space
- Upgrading your workspace
- Downsizing your operation
- Upgrading to a new computing system
If these changes occur, so may the value of your property and or assets. This means, you’ll need to update your current policy as soon as possible. Doing so ensures that you’re covered for the maximum value you need so you don’t have to pay for losses out of pocket.
Plus, if you fail to alert your insurer about a change of address or a major renovation, you may not be covered in the event of a claim.
When you hire more employees
Most types of business insurance policies include calculations based on the number of employees, so as your business expands and you recruit more staff, you’ll need to increase your employer’s liability protection to ensure there is coverage for everyone that works for you.
If your business experiences financial hardship or the scope of your operation changes, your insurer needs to know. Any changes to your business could affect liability insurance, which could put your company at risk in the event of a claim. If the right amount of liability coverage isn’t in place, this could lead to significant loss to your business or even bankruptcy.
When you change the scope of your business
You should contact your broker regarding updating your business insurance coverage if your business has recently entered a period of transformation that no longer offers the primary service or products covered by your existing policy. Here are some examples of changes that may affect your insurance policy:
- Company name
- Brand and location
- Products or services
- Company function
- Merger with another company
- Change of management
- Major transitions
If you revise any of your business offerings, it’s vital your broker and your insurer are informed so that your insurance policy terms can be updated and you are advised you of any additional protection requirements needed.
Here are some quick facts about business insurance
Types of business insurance
- Directors and Officers Liability
- Commercial Auto
- Cyber Insurance
- Professional Liability (Errors and Omissions)
- Environmental Liability
- Restaurant Insurance Coverage
- Retail Insurance Coverage
- Rental Properties
- Hospitality Industry Insurance Policies
- Construction and Contractor's Insurance Coverage
- Oil and Gas Industry Insurance Policies
Common risks that your business may face
- Employment practice liability
- Slip and fall
- Loss of business income
- Equipment breakdown
- Theft and robbery
- Crime and employment fidelity
- Business personal property
What coverage does a business insurance policy offer?
- Property Coverage
- General Liability
- Medical Payments/Workers Compensation
- Business Income Coverage
- Commercial Auto Coverage
- Transit Coverage
As your business changes, so should your insurance coverage. Having the right insurance coverage for your business allows you to operate successfully and with peace of mind. To get the right for you, contact your BrokerLink advisor at 1-866-724-2372 today!
When you expand your company’s product portfolio
Adding a new product or service means that your company is taking on additional risks. Taking new risks is a reality for business owners, but you need to have the right insurance coverage in place. These product changes can include:
- Introducing a new product line
- Adding new innovative products or services
- Removing previous products
- Purchasing new equipment
- Manufacturing new products
- Adding new computing system
As you introduce new products to the market, it’s important to include these within your insurance, specifically if your insurer requires you to individually insure each product in your catalog. Without adding additional products to your insurance coverage, you may be underinsured and responsible for what otherwise might be a covered loss.
Call your BrokerLink insurance advisor today!
Every company has different insurance needs, depending on the industry, location and nature of the business. As your business changes throughout the year, your insurance coverage requirements may change as well.
Be sure to consult with your BrokerLink insurance advisor to assess the risks your business may face and ensure that you’re getting the protection you need.
When should you update your business insurance policy FAQs
What happens if I transform my business into a non-profit organization?
It’s important to contact your broker and your insurer if the nature of your business changes, products or services change or if there is a transition in your business, this may include transforming your business into a non-profit organization. Keep your broker and insurer informed or any changes with your business so they can update your insurance policy terms and advise you of any further protection requirements you may need.
Is it possible to have my business insurance declined?
An insurance broker will help insure all types of businesses, with coverage specific to many different industries. To find the right coverage for your business, contact your insurance broker.
Do I need business insurance if my business is purely online?
Without the proper business insurance, you may not be protected against a cyber attack or data breach, as well as workers’ compensation for employees. Contact your insurance broker to learn what’s covered under your policy.