When you own a business, growth is a good thing. Growth can lead to many changes that might alter your insurance needs. The bigger your business gets, the more likely it will be that your insurance needs will be changing rapidly. Reviewing your policy every year is important to ensure that your business is always fully protected. Here are some reasons why you should review your coverage.
Inadequate Coverage
If your business has a growth spurt, the coverage you had one or two years ago may not be sufficient to fully protect your investment. Upgrading your coverage from year to year will ensure you have what you need at all times.
Missing Discounts
Just like regular homeowners’, businesses are also eligible for many discounts. Although they are somewhat different from homeowners’ discounts, they still follow the same pattern and can lower your insurance premiums.
Changes in Operations
If you change the way you operate your business, it may alter how much insurance your business needs. Working with your agent will provide you with what you need to know about how changing your method of operations affects your insurance.
New Equipment or Inventory
Buying new equipment or increasing your inventory will definitely alter how much commercial insurance you need. The type of equipment or amount of inventory added will determine the degree of adjustment that needs to be made.
Changes in Revenue
If your revenue amounts dramatically increase, it is definitely time for a policy review. An increase in revenue also means an increase in the value of your business. The more money your business brings in, the higher its future earning potential.
Changes in the Structure of the Business
Changes in the structure of a business will change many things about how the business functions. This may mean that your insurance coverage may need to be increased as well.
New Contracts
New contracts are basically continuing paychecks that extend throughout the duration of the contract. Contracts are also considered assets that a business can count on to produce potential profits for an expected period of time. New contracts guarantee income for that period and can be used as collateral for loans. This will affect your revenue as well as your insurance coverage.
Working A Larger Territory
If you have expanded your territory so that you travel a much longer distance, this will impact multiple aspects of your commercial insurance. The more territory you cover, the higher your potential risk. When you expand your territory, it will have an impact on how your insurance premiums are determined. Whenever you experience dramatic changes to your business, you need to call your insurance agent for a review.
Changes to Your Fleet
Expanding your fleet or hiring new drivers will also cause your insurance policy to be less efficient. It’s important to review your commercial policy if you adjust your fleet or drivers in any way.
J Archer Insurance Can Help Review Your Commercial Insurance
Owning a business means that you must be constantly aware of any changes in its structure, revenue, assets, type of contracts, and fleet size. Staying on top of how your business operates will help you identify any potential risks you may face. Contact the agents at J. Archer Insurance Group if you have questions about how you can make the most out of your commercial insurance. An annual review is the best way to ensure that your business is fully protected from any type of financial loss.
