Commercial insurance is a necessity, and there are multiple reasons why you want to review your policy on an annual basis, or better yet, whenever your business experiences change. As your business grows, there may be the need to obtain additional types of commercial insurance. When you first started, for example, you may not have any commercial vehicles. However, you may obtain vehicles during the second or third year of business – and these need to have commercial insurance over them.
Additionally, insurance companies may offer new and different types of coverage each year, which can provide you with additional financial protection for your business.
At ProAction, we go over every detail of your policy to ensure that it is still providing enough coverage for your business operations. There are certain events that will dictate when you should review your policy and contact us:
Downsizing: If you are downsizing, this would be a great time to reach out to your broker and discuss your policy and reduce the amount of coverage you have especially for workers’ compensation.
Hiring Employees: Make sure to contact your broker if your payroll increases as this will affect your insurance premium. Additionally, your new hires will need to be covered under your auto insurance policy. If you are hiring freelancers or contractors, your broker can provide you a recommendation on how to screen and choose to work with the right professionals who may have their own insurance.
Expanding: If you are moving your business operations to a larger space, taking on more employees, you will need to review your commercial policy. Also, if you are expanding to another city or state, contacting your broker is a must to ensure that your current coverage is still applicable in your new area.
Purchasing a New Equipment: When buying or leasing new or used equipment for your business, it’s important to ensure you have an insurance policy that reflects that information. The value of your equipment list may need to be adjusted and your broker may recommend a change in coverage to ensure the equipment is protected or it can be replaced for the same value as purchased or rented.
Purchasing a New Vehicle: All company cars must be insured. If you are purchasing a new vehicle for yourself or employees, your policies will need to be updated to ensure the vehicle is insured through your commercial auto policy.
Bringing on a New Partner or a Partner resigns: If there are new additions to your key personnel, all new partners or board members will need to be properly covered. As you would when key personnel joins your team, you’ll need to update your policy.
Ownership Changes: If you decide to leave your company and the company is going to carry on without you, you will need to get yourself removed from the policy. If you decide to sell your business, you will need to make sure your name is no longer associated on the insurance policy.
Commercial insurance is put in place to protect you, your employees and your business. At ProAction Insurance, it’s our goal to ensure you have the best products at the best price to keep your business up and running. Contact us to learn more about our additional coverages to ensure your business is protected.