You’ve worked hard to establish your business. However, if you don’t have the right commercial insurance coverage, it only takes one unfortunate event to undo everything you have built.
Your insurance policy should grow with your company, and ideally, you should make a habit of regularly reviewing it. Here are three key signs that it’s time to update your policy.
What Is Commercial Insurance For?
Commercial insurance protects your business from unexpected — and potentially devastating — financial losses. These are some common types of coverage you can get:
- Errors and omissions (E&O) insurance
- Business interruption insurance
- Property insurance
- Commercial auto insurance
- Liability insurance
- Workers’ compensation insurance
- Data breach insurance
- Employment practices liability insurance
Commercial general liability insurance is one of the most important policies to have. Commercial general liability insurance protects you if someone claims your business caused them bodily injury or some other form of harm.
The exact coverage you need will depend on the size of your business, industry, and other factors. Your insurance agent can discuss your company’s needs and help you choose a policy that works for you.
Signs It’s Time to Update Your Commercial Insurance Policy
Not sure if you need to change your coverage? Here are three key indicators that the time is right to update your commercial insurance policy.
1. You’ve Recently Made Upgrades
Increasing the value of your business is always a good thing, but it’s important to make sure your insurance coverage keeps up. For example, if your company uses a computer system, you likely have it insured.
Purchasing an upgraded system could improve your operating efficiency. However, if you don’t update your insurance to cover the new (and more valuable) technology, you may suffer major financial losses if the computers are stolen or destroyed.
2. You’re Offering a New Product or Service
Expanding your product or service offerings can be exciting. It also comes with risks that your old policy may or may not cover. Before branching out, always double-check your policy and update it if needed.
For instance, consider a scenario in which you own a cupcake shop with a public storefront that customers can make purchases from. In that case, you likely already have general liability and property coverage. But if you decide to start delivering cupcakes, too, you should add a commercial auto insurance policy to your coverage.
3. You’ve Boosted Your Revenue
Your commercial insurance should always cover your company’s existing assets. Many businesses grow slowly over time, so if you aren’t careful, you could check your policy one day and realize you’re dangerously underinsured.
For example, many business owners have business interruption insurance. These policies cover expenses if an unexpected event forces them to temporarily close.
Suppose that your company grows significantly, but you don’t update your policy. In that case, your business interruption insurance may be incredibly insufficient. It might not be able to cover your lease payments, payroll, and other expenses in the event of an emergency.
Need Commercial Insurance?
At Warrior Insurance & Services Group, we’re committed to helping business owners like you protect all that you’ve built. We aren’t bound to a single insurance carrier, so we work for you — not the commercial insurance companies.
If you’re purchasing commercial insurance for the first time or need to update your coverage, get in touch to request a quote today.