When Should I Update My Business Insurance?
There are many steps to starting a company, but investing in a comprehensive business insurance policy is an invaluable course of action for any business owner. It is also important to periodically review this coverage to make sure it reflects the value of your business down the line. In this blog, we go through some of the specific changes that would prompt the need to update your existing policy.
Changes in Revenue
As your business grows over time, your initial business insurance policy may not provide enough coverage for your growth in assets. If you are experiencing a significant increase in revenue, it is important to update your policy accordingly so you are properly covered when it comes time to place a claim. Failing to make appropriate changes to your coverage may result in unnecessary loss or business interruption.
While it is not uncommon for employees to come and go from your company, as a business owner it is your responsibility to update your worker’s compensation policy as soon as these changes occur. Failure to maintain an accurate, up-to-date policy can lead to penalties or fines.
Upgrades to the workplace, whether moving to a different location, investing in new machinery or rebuilding your current structure, means an increase in property value. In order to cover the new maximum value of your workplace so you do not face financial liability, you will need to make updates to your policy as soon as you know what your building plans are.
At any time, federal or state laws may make changes to the stipulations certain businesses or industries are required to follow. When new regulations are passed, you will need to ensure your existing policies meet the updated requirements, otherwise, it might be time for a brand new policy.
If you’re unsure if it is time to update your business insurance, contact a TCE agent to discuss your current needs. We can help ensure your policies are updated and you have enough coverage to protect the business you’ve worked hard to build.