Your to-do list is extensive and there is always a need that demands your attention and as a result, insurance becomes neglected.
Insurers will typically remind you when your policy is coming to an end and unless you tell them otherwise, they will automatically renew it for another year.
However, your business’ needs are likely to have changed since you originally took out your insurance policy and you could end up not sufficiently covered.
Therefore, it is important that you take the time to review your insurance policies and here are five common reasons.
You have renovated your premises
If you have renovated your property, this is likely to have increased the overall cost and value of your premises. This means you will need a higher level of cover to provide adequate protection against any damage or loss.
You have bought new equipment
Similar to renovating your premises, if you have bought new equipment for your business, you also need to upgrade your current policy. A break down in your machinery or tools can disrupt the seamless running of your business, so you will want to make sure any new purchases are covered.
Your staffing numbers have changed
As an employer, you need to ensure you have adequate workers’ compensation insurance to protect you and your workers against any issues that may arise from an accident. Any changes to your team will require your insurance policy to be updated to reflect this.
You have hired contractors and sub-contractors
If you have started hiring contractors and/or sub-contractors, you need to ensure you are aware of your legal obligations. This means checking if contractors and sub-contractors have their own insurance and can provide proof.
Your revenue has changed
Your insurance needs will change with any increase or decrease in your revenue. This is particularly important if you’ve taken out business interruption insurance, which covers a loss in profit due to an event such as a natural disaster. Your insurer takes into consideration your gross income, so you need to keep them updated to ensure you are properly insured.
As you can see, there are so many reasons why you need to review your insurance policies.
It can be quite complex, but your local Mortgage Choice broker can assist you in making sure your business is adequately protected now and into the future. Give them a call today.