According to the U.S. Small Business Administration (SBA), business owners should carry the right commercial insurance to protect them from named perils such as theft, natural disasters, accidents, vandalism, and lawsuits. Without adequate commercial insurance, you are exposing your business to financial distress. Because commercial insurance is tailor-made to fit the unique needs of every business, it is essential to review your commercial insurance to ensure that it fully covers your business.
Here are seven instances when you need to review your commercial insurance.
1. When You Have Changed Your Business Model
If, for example, you are moving your business online, bringing in a new partner on board, or changing it to a limited liability company, you should update your business insurance accordingly. Such key changes should reflect on your business insurance. Moreover, if a partner quits or passes away, and their absence affects your business model, you should sit down with your insurance agent and update your commercial insurance policy accordingly.
2. When Hiring New Employees
A new addition to your business, including a new employee, means that you have something extra that you should include in your commercial insurance policy. If you provide medical or dental benefits, you may have to review your policy and include them in it. According to the Insurance Information Institute (III), employers should ensure that they provide a safe work environment. Therefore, you should make sure that you review your workers’ compensation insurance to ensure your employees have the right coverage.
3. When Expanding Your Business
If you are moving your operations to a larger space or creating a new department, you will need to review your commercial policy. When expanding your business to another state or country, you should also consider a business insurance review because your current insurance may not be valid in the new location.
4. When Downsizing Your Business
When you reduce your headcount or office space, you should review your commercial insurance to reflect the reduction. According to research by the Kaiser Family Foundation, in 2019, the average annual cost of providing health insurance for a single employee was $7,188 and $20,576 for a family cover. To ensure that you keep your deductibles as low as possible after an employee leaves your company, talk to your insurance broker to revise your business policy.
5. When You Have Taken Measures to Mitigate Risks
Review business insurance when you have made some improvements that lower your business risks. According to statistics from the U.S. Bureau of Labor Statistics (BLS), over 5000 workers in the United States sustain fatal injuries at work each year. If you provide your employees with safety training or proper PPEs, talk to your commercial insurer because such measures can help lower the insurance rate.
6. When You Acquire Another Business
When you are acquiring another business, it is a great time to review business insurance. A review will ensure that you make necessary changes to your policy and give the new business the right coverage. You will also be able to make changes to the new business’ current insurance policy and have all your businesses under one coverage, making it easy to manage the policy.
7. When You Have New Equipment
Insuring your assets is a good risk management strategy. It will help you deal with loss or damages to the property. Insuring your equipment will ensure that you can continue with your work. If you have new equipment, talk to your insurance broker and include it in your business insurance policy.
These are some of the instances when you should review commercial insurance. If you need to review your commercial insurance or have any questions about your current insurance coverage, contact the experts at The Reardon Agency today. We are ready to assist you with all your coverage needs.
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