Renovating your business space is exciting, since it gives you the chance to offer a new layout, fresh branding, and better customer experiences. But while you're focused on construction and design, there's one thing that often gets overlooked: your Business Insurance coverage.

Whether you're expanding your kitchen, upgrading your fixtures, or doing a full remodel, your existing insurance policy may not automatically cover the changes you're making, or the new risks that come with them.

If your Business Insurance doesn't keep up with your renovation, you could be left paying out of pocket for any future damage, delays, or liabilities that aren't covered.

Discover in our latest blog how renovations impact insurance coverage, good steps to take before you begin any renovations, and how Aegis Insurance & Financial Services can help ensure your upgrades are protected.

Why Renovations Change Your Insurance Needs

When you renovate, you're not just improving your space. Renovations and upgrades also increase your property value, they may change how your space is being used, and can expose your business to construction-related risks.

Here's what that means from a commercial insurance standpoint:

– Increased Property Value

If you're installing new rooms, counters, flooring, equipment, or fixtures, you're increasing the value of your space. If your Commercial Property policy still reflects the "before" version of your business, you may be underinsured and won't be fully reimbursed if there's a fire, storm, or major damage.

– Construction Risks

If your contractor accidentally damages the building, or a passerby is injured near the job site, your General Liability coverage will be responsible for covering those claims and damages. You might not have enough coverage in place to cover the costs and medical expenses of an injury or damages that stem from renovation construction.

– New Equipment and Systems

Upgraded appliances, new kitchen systems, or state-of-the-art POS hardware may not be included in your current property coverage. If you're going to spend the money to improve your current business tools, equipment, and technology, then make sure these new, costly investments are fully covered by your Commercial Property policy.

What You Should Do Before and During a Renovation

Before starting any renovations or improvements for your retail or restaurant business, consider taking these proactive steps first to fully protect your business.

1. Notify your insurance agent before work begins.
Many policies require you to report material changes to your business.
2. Update your property values.
Make sure your coverage reflects the new total value of your building, square footage, improvements, and contents.
3. Confirm Contractor's Insurance.
Make sure your contractors carry their own General Liability and Workers' Compensation coverage, and get proof.
4. Ask about Builder's Risk coverage.
For larger projects, this specialized policy protects materials and labor during construction.
5. Review General Liability coverage.
Construction increases foot traffic, hazards, and liability risks, so your policy should match.

When you take the time to start your renovations the right way, you're more likely to have your investments fully protected if disaster ever strikes your restaurant or retail business.

Your Insurance Should Grow with Your Business

Renovations are a sign your business is evolving, so your insurance should evolve with it. Don't wait until after an accident or damage to discover your Commercial Property and General Liability policies are outdated.

Call Aegis Insurance & Financial Services today at 713-850-7622 to speak with a Commercial Agent or schedule a consultation. We'll make sure your coverage matches your upgrades so your investment is protected from day one.