Is it time to update my business insurance policy?
What you consider an expansion to your business may differ from what your business insurance provider considers an expansion. Launching a new product, for instance, may not feel like a big deal, but it does bring a whole host of new insurance risks that your insurer needs to know about in order to provide you with adequate protection.
Along with new product launches, there are five major instances where you will almost always want to contact your agent and revise your business insurance policy:
- Breaking ground on upgrades to your work space. You will, of course, want to update your insurance policy when you move into a new building, when you have new offices built onto the existing building, or when you renovate your kitchen or bathroom. But you also need to consider whether your policy covers new equipment, new chairs and desks. Any time you improve the space in which you work, contact your agent.
- Signing new contracts. Whenever you sign on a new vendor or client, you'll want to contact your agent and make sure that your end is covered on this new deal. In fact, your new client or vendor may even require that you buy a certain type of insurance before they'll do business with you.
- Using company cars. Don't count on your drivers' personal policies to protect you. If they're driving cars with your logo on them, you're a target for lawsuits.
- Taking advantage of fidelity bonding. You only hire people you trust, sure... but we all make mistakes. When you have new people making bank drops or handling expensive equipment for you, fidelity bonding can protect you in the case of fraud.
- Expanding your staff. When hiring your first employee, you need to revise your insurance policy. When you hire your 26th, you need to revise your insurance policy. When establishing a board of directors and officers, you need to revise your insurance policy. More people means more risk, which means you need more insurance.
Sometimes a small business stays small, and sometimes we like it that way. Sometimes it blows up overnight.
The good news is that your agent can talk you through the insurance process every step of the way. If you have any questions, contact your agent before launching that new product or before buying a bigger building. Then, see what they have to tell you.