Businesses in the United States spend more than $240 billion every year on business insurance. On top of that, demand for excellent business insurance continues to increase yearly. This market has enjoyed a consistent growth rate of about 2.2% in recent years.
From time to time, it is vital to get a business insurance policy update. But how can you know if this is the right time for your business to get one?
Many common signs can make it appropriate to look for new business insurance. Read on to learn the best signs that your business insurance might need updates!
1. Your Business Is Changing
The more your business changes, the more its needs will change. For example, you might work with new customers or provide new services. Or, you might have had an accident and realized that your business has been vulnerable in ways you did not appreciate.
Regardless of the exact nature of the changes at your business, make sure you check whether or not this affects your insurance policy needs after every change. By remembering to check this after each business change, you will know when to start shopping around for a new policy.
Even if your business model stays the same, the size of your business may change. If your company is shrinking, it might make sense to cut costs by investing in more affordable insurance. On the other hand, if your company is growing, your old insurance policy may not be sufficient for your new needs.
2. Your Work in an Industry Where Risks Are Always Changing
Even if your business stays the same, your general industry might evolve.
Industries sometimes require the companies in them to get insurance. So, for example, a company might not be able to maintain its license if its licensing institution establishes a new policy requiring insurance to meet specific basic standards.
On the other hand, your new business insurance needs might flow naturally from the nature of your goods or services. For example, you might need nail tech liability insurance if you run a nail salon.
3. You’ve Invested in New Business Equipment
Investing in new business equipment can be an exciting time. However, the more valuable your new equipment is, the more valuable obtaining protection for it is as well.
The same principle applies to any valuable investment in the physical objects related to your business. For example, everything about your building and the tools you use can suffer damage, burdening you with high repair or replacement costs.
The more valuable the physical assets of your business, the more devastating if you suffer a disaster without the proper insurance to soften the blow.
Make a point of assessing your business’s total physical assets whenever you invest in new business equipment. The higher that number gets, the closer it might be to the time you need to get a more comprehensive business insurance policy.
4. You’ve Moved to a New Office Location
Every significant change upsets the equilibrium of your business. Whatever worked in the past may no longer work as circumstances change. For example, the insurance policy that made sense when you were at an old location may not continue to make sense if you move to a new office location.
For example, some office locations are vulnerable to damage from storms. If you move to such a location, you might need to update your insurance policy to ensure that storm damage is covered.
Some people move without thinking about this and then do not notice their new vulnerabilities until one of them leads to an expensive issue.
After paying for such mistakes out of pocket, many businesses remember updating their insurance is essential. Don’t make this mistake! Invest in appropriate insurance whenever you change locations.
5. Your Compliance Needs Are Evolving Rapidly
The laws governing your industry might change to require new kinds of compliance. For example, if the law requires you to have a particular type of insurance, you will need to get it or face the consequences.
In most cases, that will consist of a fine, at the very least. In other cases, you will not be able to operate your business if you do not have the required insurance coverage.
6. You Simple Want a New Business Insurance Provider
If your business insurance provider makes a serious misstep, you might want to rethink if they are the right choice for you. However, there are many options out there for business insurance, so there is no need to worry about leaving your old provider.
7. You Don’t Like the Changes at Your Current Business Insurance Provider
Your provider might update their policies to provide different kinds of insurance. If the new insurance they offer does not suit your needs, you might want to invest in a different insurance policy from the same provider. Of course, you can also look elsewhere for a new provider.
Know When to Get a Business Insurance Policy Update
It is essential to be ready for a business insurance policy update when you need one.
Refusing to adapt to changing circumstances can leave you vulnerable to disaster. Ensuring your business insurance policy matches your needs will keep your company safe and facilitate its future growth. You can do this by always being on top of the policy options available to businesses.
To learn more about the latest information in insurance, finance, and more, take a look at our other articles!