The needs of a business can change dramatically as the business grows, adds services, and makes improvements. Over time, these changes can impact a company's liability risk and commercial insurance coverage. Unfortunately, some business owners do not realize that some company changes warrant the need for updating coverage amounts and policy protections. In today's blog post, we look at three common changes that make updating commercial coverage necessary.
When a business relocates to new physical location, it will be necessary to update Commercial Property and General Liability coverage. A new location may result in different premium rates, as well as different risk levels with the relocation. A new location might offer better lighting and security systems, improved warehouse and storage facilities, or a higher elevation to reduce flood risk. When moving your office or business to a new location, it is critical to update your Commercial Property, Business Owners Policy, and General Liability insurance to make sure there are no gaps in coverage and that premiums are based on accurate information.
Acquiring New Equipment and Assets
When your business acquires new or improved equipment, electronics, tools, or machinery, it increases the overall value of company assets. The amount of coverage originally purchased at the start of the business will not include the value of newly purchased company assets, tools, or other business-critical equipment. In order to protect these assets in the event of a loss, theft, or other damages, update your Commercial Property Insurance to make sure their values are protected.
Change in Services Offered
When a business expands their line of services, begins delivering products to customers, or eliminates outdated services, this would also trigger a need for updating commercial insurance coverage. An increase in services offered may mean longer work hours or new equipment training for employees, thus requiring greater Workers Compensation coverage. Also businesses need Commercial Auto Insurance coverage when employees are allowed to use company vehicles, and restaurants may need greater protection if they decide to start selling alcohol.
Any major change or expansion in the life of a business often means greater rewards for owners, but also greater risks. As your company thrives, protect your business, employees, and company assets with quality, affordable, and reliable Commercial Insurance solutions from Aegis Insurance & Financial Services. Our friendly, experienced Aegis team can help identify gaps in coverage, specialized coverage for your industry, and future insurance needs all while saving you money on annual premiums. Call Aegis today at 713-850-7622 for more information, or go online for a free quote!