Changes happen in all facets of business, whether it's expanding your company, buying equipment, hiring or firing employees, relocating, or making other important business decisions. Although many of these changes can impact commercial lines of insurance coverage, it can be hard to know when these changes mean cancelling or simply adjusting current insurance coverage. In today's blog post, we'll detail how consumers can know whether they should adjust their coverage, or if the policy should be canceled altogether.
Business Changes To Location
One of the changes that often require a closer look at commercial insurance coverage is when a business changes locations. Whether a business moves to a newer, safer location in town, or if the business downsizes and moves to a home office, Commercial Property Insurance should never be cancelled, but should instead be adjusted to reflect the recent changes. Cancelling a Commercial Property policy would leave valuable business assets unprotected in the event of a disaster, and would make it much more difficult for the business to recover.
Business Services Offered
Over time, a business may alter the types of services offered, or change the equipment or assets used to perform their services. For example, a restaurant might sell off unused kitchen equipment, or a retailer might stop selling certain types of merchandise. For most of these changes, a simple commercial insurance adjustment is sufficient in order to ensure the correct amount of policy coverage is in place. However, if a restaurant no longer delivers food and sells off a commercial vehicle, then it would be appropriate to cancel Commercial Auto coverage.
Employee Changes
Another instance in which it may be appropriate to adjust your commercial insurance coverage is when your business adds or loses a significant number of employees. Workers Compensation coverage can be adjusted to reflect the correct number of employees to ensure proper coverage. In addition, adding Key Man Insurance may be necessary as your business grows and expands in order to protect people instrumental to the success and daily operations of your business.
As your business makes strategic changes involving assets, locations, and employees, it is important to ensure that there is proper Commercial Insurance coverage in place when changes occur. Although a majority of business changes require a simple insurance adjustment, on rare occasions it may be appropriate to cancel one line of coverage if it's no longer needed. The team at Aegis Insurance & Financial Services is ready to help businesses throughout the greater Houston area get the commercial insurance protection that meets their unique needs. Whether it's Commercial Property coverage, a Business Owners Policy, Commercial Auto, Workers Compensation, or General Liability, Aegis offers specialized commercial insurance tailored to your specific industry and unique business needs. Call us today at 713-850-7622 for more information, or go online to request a free quote!