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For many small business owners, business insurance is a "set it and forget it" expense. Often, small business owners or contractors will get the minimum coverage required to get started and then not think about it as their company grows.
While it is tempting to not revisit your insurance needs, you could be leaving money on the table or subjecting your business to additional risks. Your insurance policies are based on the unique characteristics of your small business. As your company grows and changes, it becomes important to take those changes into consideration.
Here are 5 situations when it makes sense to revisit your insurance coverage:
This is the most common time for a business to revisit their insurance needs. The next time you get the renewal notice in the mail, consider shopping around for quotes before signing on the dotted line. Policies often renew annually but the situation for your business may have dramatically changed in that time.
As your product lines and company revenues grow, so do the exposed risks. You may be underinsured if you have not added additional product liability insurance coverage to account for the growth of your business.
It is important to be insured for the cost to rebuild or replace your company’s assets. When you change offices, the policy you purchased for your old office may not be a great fit for your new location as the details of the property have changed.
Signing a new client is always an exciting event, but some contracts may require you to get more insurance than you currently have. More clients also present the potential for additional exposure to litigation as a result of errors or mistakes; you may want to consider adding additional policies which can protect against those situations.
It is important to remember that you can shop around if you are unhappy with your current provider. Do you feel like you aren’t getting a great deal or have you had an issue with your current provider’s customer service? It doesn’t hurt to shop around and consider alternatives.
We do not recommend canceling your policy before you have a new policy in place, however, as it is risky to have gaps in coverage.
Policygenius has partnered with CoverWallet, an expert in the small commercial insurance space. CoverWallet has everything you need to keep your company and employees protected, including advice tools and quotes for all major small commercial insurance types.