“When should I update my insurance policy?” is a common question that small business owners like yourself have. Understanding your policy can be difficult enough—knowing when to update that policy shouldn’t be another thing on your list to worry about. Now is a perfect time to review your policy and see if you need to update it.
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. Recent research by the CEB found that almost half of small business owners in Canada expected their businesses to change in 2016. The most common changes? The same research found that in 2017:
- 19% of business owners plan to launch a new product or service.
- 14% of business owners plan to launch an online platform for their business.
- 14% of business owners plan to expand into new business 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 in 2018 and beyond, 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.
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, services or expanding products into new markets
Download our tipsheet
One key to a successful small business is continued growth and innovation, so we understand you may need to update your policy on a regular basis. To help you out, we’ve created an easy-to-use Policy Renewal Tipsheet to make this process even simpler. If you’re ever worried that you’re not getting the right amount of coverage for your business, simply review our tipsheet below, or download a copy and keep it in your office. It could come in handy!
Whether you’re a customer of TruShield or another insurance company, we’d love to help you out if you have questions about your coverage! Contact us at 1.844.429.9480 or [email protected] and we’ll help guide you through assessing the needs of your business.
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.