When to update your insurance policy coverage
As a small business owner, you may be wondering when to update your insurance policy. If you have shifted operations during COVID-19 to meet new customer expectations or restrictions, you may have updated your coverage. To help you make the most informed decisions, here are other situations during which it may be time to revisit your policy.
Your business changes. So should your insurance coverage.
Noticing that your policy term is almost over isn’t the only time when you should contact your insurer. It’s also important to talk to them if your business has changed in noticeable ways throughout the year. There are a number of ways in which changes to your business may affect your coverage.
It’s important to remember that the amount of coverage you have matches the current value and operations of your business. If your business has changed in any way, your policy could need an update to reflect those changes. This includes offerings a new product or service, launching an online store, or expansion into new locations.
These are changes that can affect the value of your business, and as a result, your insurance coverage needs. If you are among the small business owners planning for growth, it’s important to notify your insurance company before these changes happen. Your representative should be able to walk you through any adjustments, additions or subtractions that will need to be made to your policy to reflect those changes. Having inadequate coverage can leave you vulnerable to risk and potentially a loss.
Here are examples of key questions to ask yourself when reviewing your policy:
- Have you changed your name, physical address, products/services, entities, or partnerships?
- Has anything changed with your business vehicle usage?
- Are you comfortable with the liability limits in your current policy if you were faced with a lawsuit?
- Does your current policy protect your business contents, tools, equipment, , data, privacy, and any mistakes in tech-related work?
Key moments to update your insurance
We understand that running a small business is busy enough, which is why we’ve taken the guess work out of knowing when to update your coverage. Below is a list of key moments that could prompt a change in your coverage needs. If any of them apply to your business, be sure to contact your insurance provider and have your policy reviewed.
- Hiring new employees or replacing key employees.
- Renovating your current space, adding a new location, or moving primary locations.
- Entering into new agreements or contracts with supplier.
- Purchasing new vehicles or replacing existing vehicles.
- Upgrading your equipment or investing in technology that makes your business, building, or employees more secure.
- Changing the ownership structure of your business.
- New tenants around the business premises or changes to the neighbourhood.
- Offering new products or services, or expanding products into new markets.
Get flexible, affordable coverage with TruShield
At TruShield, we know you’ve got a lot on the go as a small business owner. We’ll work with you to make sure your insurance policy addresses all of your unique risks and can grow with your business. Get started today by visiting our business insurance page!
This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information. Terms, conditions and exclusions apply to coverage. See policy for details.