No matter what industry you’re in, business insurance is a must if you want to protect your company. After all, 40% of businesses don’t reopen after a disaster, and yet 75% of businesses remain underinsured.
Maybe you’ve already set yourself apart from these businesses by having an insurance plan in place, which is a great start. But did you know you’re supposed to update your business insurance periodically? There are a number of factors that influence when you should update your business insurance policy and continue to ensure you have enough coverage.
If you’re not sure if your policy needs an update, here’s a look at the top reasons you might need to adjust your business insurance coverage.
You Recently Upgraded the Office
Your business insurance policy is supposed to be sufficient to repair or rebuild your office space if a fire, natural disaster, or other event damages it. But if you’ve built an addition or made expensive upgrades to the building since you got your business insurance policy, it’s time to update it.
After all, you need to be sure there’s enough coverage to pay for any damages to the office, meaning you might need to increase the maximum amount on the policy. Otherwise, you could be stuck paying out of pocket on a policy that just doesn’t have the coverage you need.
You Bought New Equipment
Even if you didn’t improve the building itself, but bought new equipment or furniture, you should update your business insurance. After all, you want to make sure that those expensive desks or brand new computers are included in the policy you have. If you don’t, you might have to pay out of pocket for repairs or replacements after a qualifying event damages them.
You’ve Added New Products to Your Inventory
Another good time to update your business insurance is after releasing new products. Part of your business insurance policy includes liability if your products are defective or cause harm to someone, and you’ll want to make this apply to all your products. Additionally, you’ll want to have enough coverage in case your new products are stolen from your warehouse or damaged while in storage.
You’ve Made Changes to Your Fleet of Vehicles
If your employees have to drive for work, your business insurance plan should feature commercial auto coverage. If you’ve had the same plan for a while but have added cars to the fleet, you need to update your business insurance to reflect this change. And if some of your employees drive their own car for work, you need to make sure they’re on your commercial auto insurance policy, too, since their personal coverage typically won’t apply if they’re in an accident in their car while working.
You Have New Clients or Vendors
Business growth is fantastic, but don’t forget to keep an eye on your business insurance policy as you gain new clients. Some client or vendor contracts specify that you need insurance coverage you don’t have yet, such as cybersecurity coverage. So be sure to read your current policy before you sign on with anyone new as your business grows.
Whether you’re adding new team members, trucks, or tech, be sure your insurance plan is updated by getting in touch with Bethany Insurance. Our team will be happy to offer you a quote for a policy with the best coverage for your company!
