The past 18 months have been a time of uncertainty and changes for businesses across multiple industries. Many have had to tweak their business models, change their workflow and operations, and learn how to operate with ever-changing customer needs, health ordinances, and labor shortages. Although these changes have helped many companies survive the hardships of the pandemic, they may also impact business insurance policies by revealing gaps in coverage or needed adjustments in policies. In today's Aegis blog post, we look at how businesses can know if it's time to amend existing business insurance coverage.
Sales and Service Changes
One of the biggest changes that have come during the last year and a half of the pandemic are the many pivots and changes in services being offered. More restaurants, bars, and delis began offering more to-go meals and delivery options, or took advantage of recent state law changes allowing mixed drinks to be sold for to-go orders. Retailers began expanding curbside shopping options and offering delivery services in order to meet customer demands. All of these service changes may mean there are gaps in coverage for business owners, such as additional Liquor Liability Coverage for those selling mixed drinks to-go, or additional Commercial Auto coverage to account for additional delivery or catering services.
Labor Changes
Companies have been greatly impacted by the recent labor shortages, particularly in the restaurant, retail, and hospitality industries. As a result, businesses have been forced to meet sales goals and customer demands with fewer workers. For some industries, a smaller number of employees on the payroll might result in lower Workers Compensation coverage, while other industries carry a greater risk because their employees might be at a higher risk for accidents or injuries because they are overworked and don't have additional coworkers to ease their workload. Companies should consider consulting with their business insurance agency to discuss current labor needs and insurance coverages.
Equipment and Asset Improvements
Finally, the pandemic has also forced some companies to pivot their services or finally upgrade to more efficient equipment and tools in order to fulfill customer orders or complete service calls. An upgrade to important machinery, kitchen equipment, specialized tools, or increase in inventory can all result in a company being underinsured if disaster strikes. Any business that has replaced, expanded, or upgraded their tools, machinery, equipment, or inventory should make sure their current Commercial Property policy reflects the full value of their assets and property.
Small businesses are at the heart of our nation's economy, and supporting small business owners and their employees is a top priority at Aegis Insurance & Financial Services. Our business insurance agents can review your existing business insurance coverage to identify gaps in coverage or changes that are needed to current policies. Owners can have peace of mind that they'll have the financial protection needed if a disaster strikes, so they can focus fully on growing and strengthening their business. Contact Aegis today at 713-850-7622 for more information or complete our online form to request a free quote.