When Do You Need To Upgrade Your Business Insurance?

Business insurance has long been established as a must-have for small and large businesses alike. Now, the typical question among business owners is when you need to upgrade your business insurance. To put it simply, you have to alert your insurance company whenever you implement a change in your business. There are a number of significant situations when you may need to upgrade your business insurance as a result of these changes.

Changes in Employees and Personnel

Hiring a new employee and even replacing key employees are significant changes in your business that call for an upgrade for your business insurance. An upgrade is in order for your workers' compensation liabilities and coverage.

Getting New Clients

Landing new clients, especially those coming from different industries, requires updates for your business insurance, too. A growing number of clients not only expands your business operations, but it also increases the risks that you need to include in your business insurance policy.

New Suppliers or Changes in Agreements with Existing Ones

Entering into agreements with new suppliers or changes in your agreements or contracts with existing suppliers also call for an upgrade of your business insurance. You have to call your insurance provider and discuss whether such a change requires greater business insurance coverage.  

New Neighbors in the Commercial Area

A change in the commercial area where your business is located may also call for an upgrade in your business insurance. For example, if there is a new tenant near you that you think has a risky effect for your business, you might want to upgrade your business insurance to include business continuity or business interruption policy.

New Products or Services

Offering new products and services to the market also entails upgrades to your business insurance as they affect your insurance needs. Your insurance company can help you determine the risks you face with your latest offering and the accompanying policies that address them.

Relocation or Changes in the Workplace

Relocating your business can be daunting enough, but you shouldn't ignore upgrading your business insurance during the process. Update all legal documents to indicate your new location. The actual terms of your insurance might also be changed, as your current location might have a different risk profile.

These key changes in your human resources, operations, neighborhood, location, and products and services require you to alert your insurance company about possible changes and upgrades to your existing business insurance policy. They could help you decide the best upgrades or inclusions that best cover your needs.