Why You Should Inform Your Insurance Broker When Your Company Operations Change
Dan Levenson July 24, 2020
Changing your company’s operations can be a busy time. You might be rolling out a new product, expanding your business outside of your home state, or adding new vehicles or buildings.
Businesses need to be addable, but changes in your operations can affect your insurance coverage. Your new venture may not be covered by your existing insurance policy or your current limits might not be sufficient. As a result, you may find yourself without coverage in the event of a claim.
When making changes to your company’s operations, you should speak to your insurance broker. Here are several reasons why speaking to your broker when making operational changes to your company will protect your business:
Make sure your entire business is covered
It is important that your business has the proper insurance. It protects your business from a wide variety of problems. Having the proper insurance, can provide peace of mind so you can focus on the company.
When your company operation changes, your insurance needs may change as well. Some of these changes are obvious. For example, if your company buys its first motor vehicle, you will need to add car insurance.
However, other needs might not be as obvious. For example, if you begin hiring employees, you will likely need workers compensation insurance and your business may consider employment practices liability coverage. It is much better for find out before you need the insurance than regret not having it at all.
As a result, checking with your insurance broker every time your company’s operations change is a good idea to keep your business protected.
Allows you a periodic review of your coverage
In addition to making sure your new changes are covered by your existing policy, you can also review your entire policy. Many people forget to periodically check their coverage. They assume once they choose a coverage, it should be fine for the future.
While note all changes require increased insurance insurance coverage, over time small things may add up. In the event of a claim, insufficient coverage can leave your business on the hook. What you thought was appropriate five years ago might not be enough today.
Avoid this problem by periodically checking with your insurance broker. Anytime you make a change in your business operations, schedule a full review as well. It allows your broker to review your coverage and suggest any changes to your overall policy.
Help you plan for the future
Chances are that your latest change in company operations will not be your last. As companies grow and change, their insurance needs change as well. Because your latest change is the next step towards a new change, planning is key.
By discussing possible future changes with your broker, you can make better plans for future expansion or changes. By understanding additional costs or liabilities now, along with the type of protection you will need, you can make more accurate plans while knowing the exact steps you need to take.
By discussing updates to your coverage, you can get a jump on your next step.
Need to get your company properly insured? Contact us today!
If you would like to review what you have, if your business needs to update its insurance coverage, or you are shopping for new insurance, contact us today! We can discuss your options and help you choose the best coverage for your business.