Commercial insurance protects businesses against the risks associated with operating a business. However, these policies are flexible enough to help you meet your unique business needs. Perhaps you have the mindset that you only need to assess your commercial insurance when significant changes occur. While that is reasonable, there may be certain situations that trigger the need for an evaluation.
Here are a few reasons why you may need to review your commercial insurance.
1. Changes in Products/Services/Locations
A great time to explore commercial insurance review is during significant changes to your business. If you are expanding and opening up in new locations, such expansions will increase your business risks, thus necessitating changes to your insurance policy. Under such circumstances, make sure to consult with your insurance agent. Your insurance agent should be able to guide you through the stages associated with a significant change.
As you proceed with a business insurance evaluation, make sure that you have all of the relevant information regarding your business’ new location listed on the policy. If you are considering a new product or service, inform your insurance agent as you will have to adjust your policy accordingly. Your insurance agent will help you understand how adding a new product could impact your policy both in the short term and long term.
2. Changes in the Scale of Operation/ Workforce
You should review your commercial insurance policy if your business has either reduced or grown in its scale of operation. Changes to the size of your business can impact your insurance needs and costs. If your business has suffered changes to the total revenue that are different from the original projections stated in your policy, make sure to inform your insurance agent. If you have a surge in revenue, such an increase may alter the amount of money that you are paying for your policy. Conduct a business insurance review to stay informed, and you won’t be caught off guard if your policy changes. The same rules apply to any changes in the workforce. If your number of employees has increased beyond a set limit, you will have to adjust your workers’ compensation coverage accordingly.
3. Addition of New Accessories
If you plan to add any new accessories to your business, consider performing a commercial insurance review. Whenever you add new accessories to your business, you must consider all the potential outcomes. Such additions may increase the likelihood of accidents and workplace injuries, thus increasing the overall risks. However, the addition of new equipment may also lead to increased revenue. If you plan to add long term accessories to your business, review your commercial insurance to be fully covered. These changes can impact your business for at least ten years from now. That’s why you must protect your investment in case of future uncertainties.
4. Changes in Risk Management Strategies
If you are planning to make changes throughout your business to minimize risks, evaluate your commercial insurance policy to determine which risk management services are included within your existing policy. Also, identify potential threats before they turn into serious problems in the future. Your risk management advisor can inspect your business and point out a potential liability risk. In such cases, if you don’t address the issue right away, you can end up in a liability dispute that may jeopardize your business’s future. Make sure to assess your commercial insurance policy to be prepared for any situation that may arise in the future.
As a business owner, you must have your commercial insurance reviewed to be aware of the risks. When you’re ready to find reliable insurance for your business, the team at Premier Risk Insurance are here to help! We serve Long Island and neighboring cities in New York – Contact us to get started today.