Due to the fact that commercial insurance tends to be tailored to the individual needs of a business, a lot of company owners will purchase their policy and then not worry about it again. This is normally fine, assuming that your business does not undergo any significant changes during the year. However, there are certain situations that require you to sit down and take a look at your current policy to ensure it is still sufficient. Keep reading to learn what a few of those situations are.
Your Business Grew or Shrank Significantly
Any swings in your business, either up or down, can have a direct impact on your company's insurance costs and needs. If the amount of revenue that your business made during the year is vastly different from the estimate that was provided to the insurer, you may either be eligible for a lower premium or owe money to the insurance company. While fluctuations in your business do not require that you contact the insurance company, it is important that you stay on top of your premiums. If you aren't paying the right amount in premiums, it could come back to bite you if you need to file a claim at some point.
You Moved Locations or Changed Your Offerings
Your insurance needs will change when you move business locations. Therefore, it is imperative that you inform your insurance agent when a change in location occurs. Your business may have been located in an area that was known for higher crimes, causing your rate to be higher, but when you moved to a new location that was safer, it could have opened you up to a reduced rate.
In addition, when you offer a new service or product, you need to let your insurance company know. This is particularly true if it is different than what you have been offering in the past, as your policy will need to reflect the types of risks that you and your company are going to be exposed to moving forward.
You Made Improvements to Reduce Your Business Risk
As a business owner, it is always a good idea to have a risk management strategy in place. You can speak to a third-party firm to get help identifying areas of weaknesses in your businesses and how accidents and losses can be avoided, or you can speak to your insurance company and find out if they have their own risk management consulting service that can help you with identifying your business' risks. When improvements inside of your business are made, make sure to inform your insurance agent. In some instances, you may be able to get a lower insurance rate when you supply proof.
If any of the aforementioned points apply to you, you should take the time to review your current business insurance policy, as you may be able to qualify for a lower premium. For more information, consult with a commercial insurance provider today.