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 or changed operations to meet new customer expectations or restrictions, you need to be contacting your insurance provider to make them aware of these changes. Failing to communicate these changes to your insurance provider, could leave you without insurance coverage, period. Better to be safe and to communicate these changes, and best to do so, before they happen. 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 changes at any point during the year. There are several 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 would include things like offering a new product or service, selling products, or providing services outside of Canada, launching an online store, changing business locations, or higher levels of stock and equipment that requires a change in property limits.
Your representative can walk you through any adjustments, additions or subtractions that will need to be made to your policy to reflect those changes. Having inadequate or no coverage can leave you vulnerable to risk and potential loss.

Here are examples of key questions to ask yourself when reviewing your policy:

1. Have you changed your business name, physical address, or the products or services that you’re offering?
2. Has anything changed with your business vehicle usage?
3. Have your property values changed, or stated differently, does your current policy properly reflect the limits that you have for business contents, including stock and equipment?
4. Are you comfortable with liability limits you currently have on your policy?

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.
• Purchasing a new vehicle or replacing an existing one.
• Purchasing new equipment, including technology that improves the security of your business, building, or employees.
• Changing the ownership structure of your business.
• Offering new products or services, or expanding your offering into new markets (e.g. outside of Canada).

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.