As businesses change and expand, so should business insurance coverage. After all, the commercial coverage needs of a brand-new business are very different than insurance needs after several years in operation. Having the right type and amount of commercial coverage ensures that businesses and owners have the financial protection in place to recover quickly if disaster strikes. In today's blog post, we'll look at three key examples of when business insurance coverage should be updated and increased due to changes in the company.
Office Relocation
One of the biggest reasons for updating and increasing commercial insurance coverage is when a business moves to a new office location. Often, companies end up in larger facilities due to growth and the addition of more employees. As the office space grows, so do the needs for Commercial Property Insurance. Commercial insurance is usually impacted by the new physical location of the business, since premium rates are determined in large part by the physical address of the company. Rates may increase or decrease based on the new location's crime statistics, flooding history, safety features, building history, and other factors.
Acquiring New Business Assets
When businesses experience consistent growth, there is often a need for additional materials and equipment to keep up with customer demand and meet company goals. As a result, companies may need to purchase additional tools, specialized equipment, updated computer and phone systems, and more service vehicles. All of these purchases mean more assets that need to be covered under Commercial Property Insurance or Commercial Auto Insurance. Not insuring new business assets puts the business at risk of greater losses if the company suffers from theft, fire damage, flooding, or other disasters.
Introducing New Products or Services
As businesses look for ways to increase revenue streams, they may begin to offer a larger product line or expanded services. However, a new service might result in possible liability claim if a service is not performed correctly or causes damage to customer property. Also, businesses may be held liable if a product causes customer injury or is found to be defective. In these cases, having higher rates of General Liability coverage can be crucial to the long-term success of a growing business.
No matter what stage of growth your business is experiencing, it's important to start off with reliable, top-quality, and affordable Commercial Insurance coverage from Aegis. Aegis offers a full range of Business Insurance policies, including Business Owners Policy, Commercial Property Insurance, Commercial Auto, General Liability, Key Man Insurance, Workers Compensation, and Excess Liability Insurance. Call Aegis today at 713-850-7622 for more information, or go online to request a free quote today!