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Insurance Network Agency

From November to January, I wrote two consumer-based articles and two commercial-based articles every month covering different insurance topics for the Insurance Network Agency. These articles were published in their monthly newsletter for their customers to read.

November 2022 Consumer Newsletter Article 2

There’s much to think about when protecting your business. One way to protect it is with commercial insurance, but the type and amount of coverage you need can change often. To stay protected, a general rule is to review your commercial coverage annually, but there are other events that can affect your coverage. Below are five instances when you should review and, possibly, adjust your commercial insurance coverage:

Changing/upgrading work space 

When changing or upgrading your business space, you’ll need an insurance policy to match the change. If you are buying or leasing a new space, you’ll want to be insured for the cost of the building. This also goes for renovating the space and making sure everything in the space is covered. There’s a financial risk involved when upgrading your space and investing in new equipment, so it’s important to talk with your insurance provider to see if extra coverage is needed.  

Adding company vehicles 

Company vehicles are treated differently than personal vehicles because more risks are involved. It’s not only important to have coverage for your company’s vehicles, but to also have coverage for employees who use their personal vehicles for work. Although they may have their own vehicle insurance, they may sue your business if their vehicle is damaged during work-related travel.  

New contracts with vendors/clients 

Some contracts with vendors or clients may require you to have a certain type of insurance or add someone to your policy, which may bind you to more coverage than what your current coverage offers. 

Addition of assets/employees  

When you add assets or hire new employees, you’ll need to make sure they’re protected. You’ll need to review your policy to ensure it fully covers everything and everyone. You’ll also have to make sure you’ve met legal requirements like worker’s compensation. If you also add new products to your business, it’ll affect risk. You’ll want to make sure the products are protected in case they're stolen or damaged. Being underinsured could leave you to cover the loss.  

When you expand or downsize your business, you’ll need an insurance policy that covers your company’s new size. If you plan to expand your business, you’ll need to increase the coverage limit. As your company grows, the damage potential also increases.  

Reviewing your commercial insurance annually is important, but it’s also important to review it any time your company goes through major changes. As your business changes, the type and amount of coverage you need can change. Talking with a professional can help you navigate your insurance needs and keep your business protected.