It’s a new year for you and a new year for your business? With a fresh start at the stroke of midnight, it’s a perfect time to review your existing commercial insurance and compare it to your current and forecasted business. If your business has had a make-over or even subtle changes in the last 12 months, it may be necessary to update your coverage.
Have you hired new employees?
If you’ve hired a first employee, Congratulations! You’ll need to update your insurance sure in order to ensure protection as an employer. If you’ve increased the number of staff, you may need to update your policy to cover the growing size of your company and the responsibilities and risks that come with it.
Have you added new product or service offerings?
If you’ve expanded your list of service offerings or products, you may need to update your coverage. For example, an interior decorator who previously used sub-contractors to implement the design will now bring an in-house team for painting and general construction needs. The interior decorator is still an interior decorator, but now also needs additional coverage for new risks as associated with manual labor inside clients’ homes.
Have you expanded the physical boundaries of where you do business?
If your business has expanded to offering services in new states, cities or towns, you may need to update your coverage to comply with laws of those jurisdictions or to ensure you’re covered within the boundaries of those territories.
Have you acquired new equipment or inventory?
This one is pretty simple. If you’ve purchased new equipment, you want to make sure it’s included on your policies in case of loss or damage.
Are you forecasting an increase in revenue?
If your business is doing well and revenue is growing, you may need to update official income estimates with your insurance provider in order to ensure you have enough coverage in an errors and omissions policy for example. If your business growth has slowed and your year-end revenue outlook is less than before, you may be able to save some money on insurance by supplying an updated revenue outlook.
These are just a few things to consider as we start 2015. The bottom line is this, it’s a new year, and there’s a lot going on. Take the time now to discuss your existing policy and updated needs with your insurance provider. Or, if you own a small business and haven’t invested in insurance yet, now’s a great time to get started. Give me a call – Linda Christ, a better way to manage risk.