Common Instances That Signal The Need For A Commercial Insurance Review
If you have been operating your business for a long time, and everything is going well, it is easy to assume that it is okay to keep everything the same. However, this type of mindset when it comes to insurance can be a problem. In the same manner that you like to spruce things up and change the services or goods you offer your customers now and then, it is a good idea to take the same approach to your insurance needs. Learn about some of the instances when it is a good idea to review your commercial insurance policy.
If your business has moved locations since the last time you had your policy reviewed, it is especially important to take a closer look. Moving to a new location often means greater risks. For instance, if the old location was 5,000 square feet and the new building is 7,500 square feet, there is a good chance the value of the new building is higher. You must have enough coverage to compensate for this increase in value.
Additionally, the new location might have potential hazards that the old location did not. For example, if your new location has a parking lot, and your old building did not, you need to ensure your policy includes liability protection for the parking lot premises.
Whenever you make changes to the structure of your company, such as changing from a sole proprietorship to a limited liability company (LLC), you need to account for these changes in your insurance. Not only do these types of changes typically signal an increase in the value of the company, but it could also mean that you have onboarded more employees, so you need to ensure you are protected.
To ensure you are not underinsured, it is best to have the policy reviewed to ensure it is in-line with these new changes.
Increased Services or Products
An increase in the types of services that you offer is also important. Take an aquatic center that is now going to start offering swimming lessons, for instance. Depending on the terms of their current insurance, it might not offer coverage for students that are taught on the premises.
In this instance, if a student is injured, the company could be left with the responsibility of paying any costs incurred as a result of the injuries on their own. An insurance policy is only helpful when it is specifically suited for the operations of your company, so have the policy reviewed. To learn more information, reach out to a company such as United Counties Insurance Group.