by Marie King
Change is inevitable, especially if you own a business. Each time you increase or decrease the size of your company that can trigger a need for more or less coverage in your business insurance.To figure out what your needs are, you should review a number of areas in your company. These areas include: name, location, operations, property and income.
It’s important that your company name and telephone number are correct. When it’s time to renew your business insurance, its name may have changed. You might have started out with the Smith and Jones Company, and then added a partner named White. You also may have gotten a status of LLC, which also affect your business’s nomenclature.
Your telephone number is a crucial piece of contact information that your insurance company needs to know. If you’re using a toll free number instead of your old one, you should inform your insurance company. You may also have switched from using a landline to a cell phone. This change also needs to be reported to your business insurance provider.
It’s crucial to notify your business insurance agent if your company address has changed. You may have bought a building to accommodate your expanding business. On the other hand, a downturn may have forced you to move your company into smaller quarters. Both these instances call for a change in the business insurance coverage you currently have.
Diversifying is one way of expanding the life blood of your company. For example, if you have gone from repairing computers to being an Internet provider, you need to update your business insurance, so you have the proper coverage.
You may also have taken on more contracts. You could have decided to market your services online. These changes expose your company to more risk. That’s why it’s important to make sure that your business insurance covers the new initiatives and investments, which you are making.
In terms of your business insurance, the amount of property that you have should be updated often. A decline in inventory could merit a change in your coverage. The expansion of an existing one or the purchase of a new piece of company real estate warrants an alteration in your business insurance. Equipment that you have and its value also needs to be tallied to make sure that your company property is not under insured.
The amount of money you make can influence the amount coverage that you have. Protecting the income you have is essential to your risk management. BOP, a business owners policy, has provisions to protect your income. However, you need to make sure that your policy reflects your true revenues and risks.
On the other hand, the number of employees you have and the cost of your payroll can be strategic in sorting out what your business insurance should cover. If you’ve added new personnel, that may call for expanded coverage. If your workforce has declined, that may be a way that you can save on your expenses.
If you have made changes in your company, you need to update your business insurance. Even the smallest changes, such as a name change, can affect your policy. More complex calculations, like risks versus revenues, can be a major factor in determining the right amount of coverage.