It is essential to review your small business insurance coverage regularly. It would help if you did it at least once a year. The more you review your insurance policy, the easier it will be for you to find any gaps in coverage and address them before they become problems. Here is when to re-evaluate.
Before Signing a Lease
Your lease can be expensive and time-consuming if you don’t have the proper coverage. Before signing a lease, ensure that your insurance covers damage caused by fire, vandalism, and other hazards. You may also want to add liability coverage as an option.
Make sure you have the right amount of coverage. Your commercial insurance in South Florida should include enough coverage to cover any damage during your lease term. If you’re leasing space in another building, ensure you understand what type of coverage your landlord has and whether it will protect against fire and other hazards.
Change of Risk
Suppose a business’s risk profile changes, for example, if its products or services become more complex or expand to a new geographic area. The insurance company may increase its coverage, leading to a small business insurance review. A similar change may occur if the industry in which you operate becomes more competitive and more challenging.
After a Natural Disaster
After a natural disaster, such as an earthquake or hurricane, it is also essential to review your business liability insurance in Florida coverage to ensure it covers damage caused by natural disasters. You must review your liability coverage if there have been increased claims related to weather-related events such as hurricanes or earthquakes.
Before Adding Employees
If starting a new business, you should review your insurance coverage before hiring any employees. Taking time to do this will help protect your business from potential liabilities. For example, suppose an employee files a claim against your company for personal injury or property damage. In that case, you must have sufficient insurance coverage to cover any claim’s cost.
Addition of Assets
When buying equipment or expanding, ensure that you have adequate liability insurance in place. Ensure that all of the items are covered by the policy and that coverage extends beyond physical injury and property damage.
When Changes Occur to Your Business Model
Due to changes in your business model, you may need to change your insurance coverage. For example, when introducing a new product or service that results in a new risk profile, you may want to add additional policies or change existing ones.
Additionally, when an employee leaves your business and you’re unsure whether they’ll return, you may need to update their policy information or make other changes based on their new employment status.
Before Hiring Independent Contractors
Before hiring any third party, you should understand their insurance coverage. It may vary depending on the type of work that they are doing for you. If they’re working off your premises, check with their insurance agent to find out if they carry business liability insurance in Florida.
Changes in the Industry or Market
If your business experiences a significant change in its industry or market, this may affect your insurance rates. For example, start operating as an independent contractor instead of an employee and lose your group health coverage through your employer. You will likely have to find other types of insurance coverage that offer protection against financially catastrophic losses due to illness or injury.
Business and commercial insurance is a key asset to your venture. You should re-evaluate the policies each time you make new partnerships or add employees. For your commercial insurance in South Florida contact All Risk Insurance Group.