According to the Insurance Information Institute (III), you should review your business insurance at least once every year to keep up with your coverage needs. Every company, regardless of its scale of operations, goes through periods of growth and change. This change in operation requires a subsequent change in the existing insurance coverage. A commercial insurance review will help you go over every aspect of your company’s needs while uncovering areas of growth that need new equipment or locations to be added to the policy. Thus during a review, your agent will go over your company’s needs to ensure that it is fully protected against all types of incidents.
Here are a few reasons why you need a commercial insurance review.
Substantial Shifts in Scale of Operation
Companies grow, but they also downsize. Whether you upsize or downsize your business, your business insurance needs will also change accordingly, with higher revenues attracting greater insurance coverage. A commercial insurance review will determine if your insurance offers sufficient coverage for every aspect of your business. Any significant change in size can lead to gaps in coverage, resulting in a devastating financial loss. Adjusting your commercial coverage will save your money and guarantee that your company is protected in times of emergency. When a company downsizes, getting rid of coverage you no longer need is a great way to save money and limit your budget.
Introduction of New Security Measures
New security measures can significantly reduce your company’s risk of loss. State of the art security systems, security patrols, and automated systems that require two-step authentication are all great means to protect your business. Lowering your financial risk can lead to reducing your insurance costs as well. The more effective your security, the lower the coverage you require. When you conduct such mitigations, ensure that you review your commercial insurance and lower your insurance costs while maintaining the same coverage level.
Changes in Locations or Services
Companies may expand both in terms of locations and services. If your company expands to new locations or launches new products/services, greater coverage may be required to protect the same. Usually, insurance companies charge higher insurance costs where high risks are involved. This means, if you relocate your business premises from a low-risk location to a high-risk one, you will need to purchase additional insurance to avoid underinsurance and vice versa.
Purchase of New Vehicles or Equipment
Expensive equipment requires high maintenance costs as well as a comprehensive insurance policy to cover the increased risk. When you make a significant purchase such as a heavy/sophisticated machine, make sure to review your business insurance and include it in the coverage. This way, you can rest assured that your company is fully covered from the minute the final purchase is made. Contact your insurance agent as soon as you make such expensive additions to your existing machinery or vehicles.
Interested in finding the right business insurance for your company? Then turn to the experts at Sausman Insurance in Mifflintown and Millersburg Pennsylvania. Our team is ready to assist you with all your insurance needs. Contact us to get started today.