That nature of business is change. If your revenue stayed the same every year, your business would flounder. Likewise, a successful business needs to respond to a changing market. This could mean changes to a business structure, new product lines or even changes to your company’s physical location.
As your business evolves, your insurance will need to evolve too. Failure to reflect changes in your business could lead to holes in your coverage. Holes that you could quite literally end up paying for. Here are some reasons you should evaluate your company’s insurance on a yearly basis.
Changes in your business may mean changes in your exposure
You may have added new products to your line or signed contracts with new suppliers. Any change in your business operations may have exposed your company to new risks. You may need to explore different types of coverage to protect the business from this new exposure.
Increased revenue may necessitate a change in coverage
If your sales are up, you may have a larger budget for insurance coverage. Perhaps you could only afford the minimum coverage before, but now you can upgrade to more comprehensive package. Your previous coverage may have also included business income coverage, and if your profits are up, you will need to change the policy to reflect these new numbers.
Property changes need to be reflected
Perhaps you made improvements to your storefront, or maybe you moved your business entirely online. Any changes in business property value need to be reflected in your insurance coverage. This also includes significant changes in your inventory
If you are unsure of the coverage areas to include, you may consider reaching out to an attorney who has experience assisting businesses. An attorney can help you review your policy and point out holes in your coverage that could open your company up to potential legal problems.