Insurance “Checkups” for Expanding Businesses

| 550 Words | 5 Min Read |

We insure many businesses. From chiropractics to retail shops, plumbers to truckers, storage facilities to oriental rug businesses; and talking to business owner after business owner, we know you have a lot on your plate. Some tasks can fall in the checklist category. Check, done, move on and forget. But there are some tasks that need to be revisited often. Insurance is one of those. When your operation changes, expands, or shifts, so should your business insurance coverage.

What changes in your business leads to a reassessment of your insurance policy?

* Selling new products
* Moving to a new location
* Staffing changes
* Purchasing new equipment

It is important to reassess whenever something changes in your business that makes it grow. Otherwise, you could end up with gaps in your coverage. These gaps could be devastating to your business. Benedikt Sander, senior vice president and product manager at Liberty Mutual Insurance says, “A data breach or car accident doesn’t wait, and these incidents can really damage a small commercial enterprise.”

But constantly being on the alert to recognize possible insurance changes is usually too much for a business owner. That’s why we recommend, at minimum, to schedule a yearly insurance “checkup” with your independent insurance agent. They can help you recognize how changes in your business lead to risks you could face. But it is important to visit your agent whenever there is a significant change in your operations. 

“If you’re unsure of how a certain change may affect your insurance coverage, then call your agent,” says Sander.

An independent agent can help you find areas that may be an issue that you didn’t even consider. Liberty Mutual gives a good example:

“Say your restaurant expands its reach by offering catering at private and corporate events. To streamline the process, you also launched online ordering capabilities. These changes may introduce new exposures. For example, you may be more at risk for a data breach. You may also be more at risk for food-borne illness claims if meals are not transported correctly. You might assume your insurance already covers these risks, but if you keep your agent apprised, you can be sure you have the protection your business needs.”

Liberty Mutual also passed along good questions to ask if your a business owner:

What changes have I made to my business operations in the last year?
Have I purchased any new equipment or technology?
Am I offering a new service?
Did my business have a significant increase in revenue?
Am I conducting business internationally?
What has changed with my staff?
Have I hired more employees?
Have any employees’ roles changed?
Am I hiring temporary workers?
What has changed with my vehicles or drivers?
Did I purchase new vehicles or remove vehicles from my fleet?
Do I have any new drivers?
Do my drivers use rented or personal vehicles?

If you find yourself answering yes to any of those, you should call your agent. We can recommend higher or lower policy limits, adding new coverage, or removing coverage you no longer need. 

It is good to point out to create a good relationship with your agent. The more they know about your business, the more they will be able to help you find the best coverage for your business.

Source: Liberty Mutual