Operating a business can be stressful, as you have to navigate a lot of rights and responsibilities. Therefore, it is important to regularly assess your commercial insurance policy to ensure that you are still fully protected.
As your company expands, that is a great time to assess your commercial insurance policy. Your insurance should be designed to protect you in every situation. Here are some situations when you should consider your options.
- Policy Revisions
A common commercial insurance policy protects your business against potential liability disputes, property damage, and emergencies. As your company begins to expand, you become more exposed to risks. If you have purchased enough coverage, you won’t have to worry about a potential disaster. Don’t be afraid to upgrade your policy as your needs change.
- Renovation Project
Your insurance should cover you if you have to rebuild your property or replace any equipment. If you are planning on renovating your building, you will only be covered by your policy limit if you suffer a loss, and that may leave you vulnerable to potentially covering the upgrades out of pocket.
You should perform background checks on anyone handling your company’s finances. However, your organization is still at risk for fraudulent acts by your employees. Consider adding bonding insurance to your coverage. This covers you and your clients when your employees engage in fraudulent acts.
- Developing New Products
Perhaps there are plans in place for your business to launch a new product. Make sure you amend your product liability insurance to protect you in the event that a defective product causes damages. Also, assess your policy to ensure that you are covered if the products are stolen or vandalized. This gives you the best chance to maximize the returns on your investment.
- Commercial Vehicles
If your business owns or operates any vehicle, commercial insurance covers them if a situation arises. You should also add coverage for cases when your employees drive their vehicles on the job. Contact your insurer to figure out your coverage options. Even if your employees have their auto insurance, you may still be at risk if they are involved in an accident in a commercial vehicle.
- Director’s Insurance
If your company begins to expand, you may opt to make leadership changes. Before adding any new directors to the company, make sure that they are insured for any negligent decisions they make regarding the company. Finding the right directors is often a complicated process. Any time you make changes to the leadership structure, assess your insurance policy.
- New Client Contracts
Acquiring new clients is a great feeling. However, there are some situations when the contract may leave your company exposed unless you change your insurance coverage. Consider adding professional liability insurance, which protects your business against a potential lawsuit over an error.
These business insurance tips can help you avoid a financial disaster. Make sure your business is fully covered at all times. If you have any questions about your policy, contact our experts at Family Financial Insurance Group, and we will assist you.