Let’s say you started your business 5 or 10 years ago with just a small space. Now you have a large office or maybe a full retail space serving customers on the premises. If you still have the same insurance coverage you did when you started, the chances are, you are underinsured.
To make sure you have all of your assets covered, review your business insurance program annually. Circumstances change, and without an annual review, you could face substantial expenses if you suffer a loss.
It’s common for small businesses to start out with basic insurances, such as commercial property and general liability policies. However, as the business grows you might have to add additional coverage, such as:
- Excess Liability or Umbrella
- Workers’ Compensation
- Professional Liability
- Commercial Auto
- Employment Liability
- Directors & Officers Liability
- Employee Benefits Liability
Ensure the following elements are considered during the annual review:
- Revenue: More business is good, but it also means a greater potential for liability. Have your annual sales changed?
- Property: Have you added equipment, computers and such that would create a need to increase your commercial property policy’s limits?
- Location: Your business owner’s or general liability policy could be affected if you’ve added, closed, or moved locations.
- Travel: A hired and non-owned auto policy may be needed if your employees are frequently driving rented vehicles.
- Employees: Have you had an increase in your workforce, turnover rate, or use of contractors? Consider employment practices liability insurance for high turnover rates. The more employees you add, the more you’ll pay for your workers’ comp coverage.
- Services: Are you offering additional services? For certain types of work, you may need additional endorsements to your general liability policy.
- Customers: Are you serving new clients or industries? This may cause problems with your professional liability policy if you’re servicing high concentrations of high-risk clients/industries.
Annually reviewing your business for exposures and insurance needs can certainly mitigate your risks in the future. Contact the MVR Insurance Agency at (914) 693-3500 for your next business insurance review.