Does your commercial insurance policy need to be reviewed?
20, Oct, 2021
As your business grows and as you adapt to the needs of your customers, change is inevitable. The last thing you want is to find yourself in a position where your business insurance policy doesn’t fit your business needs. Depending on the size of the claim, you may find yourself in shaky waters. On the other hand, you may even be paying for coverage you don't even need anymore. Overall, it is important to do an annual review of your needs and your coverage because being under or over-insured can be a costly expense.
The industry you are in, the amount you make, and the level of risk you face and your previous claims history all factor into the amount of coverage you have and how much you pay for it. Insurance is and should never be one size fits all. When there are changes to your business, your insurance policy needs to be updated to accurately reflect your business needs and ensure you are covered in all relevant areas.
Signs that your business insurance policy needs an update
It is recommended that you to review your insurance needs annually, at the time of your renewal, and at any major business milestones.
Here is a quick list of things that may indicate it’s time for an update.
- Significant Growth in Revenue
More business could mean more problems if you don’t have the appropriate coverage. As your business grows, so does your risk exposure. A change in revenue and the growth of your business means you need to change your coverage level to reflect the increase. As your exposure increases, it is important to increase your liability limit and make sure you have comprehensive coverage for your risks.
- Change in Products or Services You Offer
An increase in the products or services you offer also increases your risk exposure. It is important to evaluate that risk and have the needed protection if you are expanding into new markets. If you move your business into a high-risk industry or expand your spectrum of services, you will need to increase your coverage to cover potential claims that could result from your professional activities. It is also important to make sure that your coverage also provides protection for the new risks that may arise from new business, such as cyber protection and coverage for valuable papers.
- Moving Office Space
Your commercial property insurance is directly tied to your office, so if you move to a new location or expand to more offices, your policy needs to be updated. Moving to a new area may affect your premium if the property is located in a high-risk, high-crime area.
- Hiring More Employees
As your business grows, you will need more employees to fill the gaps and needs of your business. Your business insurance most likely covers full-time employees but what about contractors? To ensure everyone is adequately covered, your sub-contractors should have their own liability insurance and you must have enough coverage for all your employees.
- Purchasing New Equipment
If your business has grown, chances are you’ve purchased more equipment or even upgraded your technology. If this equipment breaks down, your coverage may cover the cost to replace or repair. However, contents insurance and equipment breakdown insurance typically have a specific limit of equipment covered (e.g., $50,000), which is why you need to update your policy if you have more expensive and more valuable equipment to protect.
The Technologists Office Protection Program
Designed specifically for Technologists, closely with ASET, the Technologists Office Protection Program (TOPP) provides comprehensive coverage in the event of damage plus a number of value-added coverages including:
- Cyber risk
- Damage to computers and electronic media
- Loss or damage to valuable documents
- Crime coverage including fraud
- Employee theft
- Umbrella coverage bodily injury, property damage, personal and advertising injury
Whether your firm rents office space or owns its own building, it's vital to have protection against possible damage to business property, as well as many other risks.
With the Office protection program, you and your business have 360° coverage. To see how the Technologists Office Protection Program can give you and your business comprehensive coverage that is designed to fit your needs, CLICK HERE.