Monday, October 18, 2021

Is It Time to Upgrade Your Business Insurance?

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Whether your business is small or large, it has to reshape itself to match the market. When your operations are dynamic, your business insurance should also stay updated.

Before you renew your policy or go for a new plan, it is wise to ask your broker for business insurance quotes Canada.

No single insurance plan can work for every business; so, learn what suits yours the best. Otherwise, you may end up overpaying.

Ideally, consider upgrading your insurance plan when:

You Hire More Staff
Business insurance premiums consider the number of employees as one of the most crucial factors. As a start-up, you may have worked with 3-4 people. The volume of the operations changes, and you need extra manpower.

But if you plan to expand, you may need to recruit more staff. As a result, you should also increase the coverage under employer’s liability protection. Updating your current plan will ensure that you will have ample defence during the trial.

Your Business Location Is Different
As you upsize, you will also need a much bigger commercial facility. Furthermore, you could even be looking at new equipment purchases. Irrespective of the extension or renovation of the old building, your new policy should cover the new premises and everything in it accordingly.

It is not just for when you upgrade your workstation, but you may have unforeseen events that force you to downsize. Or you simply move the business to a different location of the same size.

Update the current policy soon to receive the maximum value coverage. Meanwhile, if you don’t intimate the insurer, you may not be eligible for the benefits if disaster strikes.

You Add to the Business Portfolio
You could be a professional consultant offering specific services. Over time, you enhanced your skills and are now providing many more services. This means your risk level has increased, and you need the right insurance coverage.

Likewise, for profitable sellers, distributors, or manufacturers of products, expanding the portfolio is the next move. When your old insurance policy doesn’t cover the new product line, you could face substantial losses.

Even if you have removed some products off the shelf, make sure your current insurance policy reflects those changes. In the same vein, add all the new equipment so that you are not underinsured.

The Scope of the Business Changes
Mergers with other companies, changes in business structure, name, and industry can mean that its scope has changed. You may no longer offer some services, or your organization has undergone a transformation.

When the management changes, it is important to notify the insurance company because some coverages may change, such as:

• Directors and Officers Liability

• Errors and Omissions Insurance

• Contractor’s Insurance Coverage

In addition, if you switch to digital operations, you will need cyber liability coverage. Purchase of computers, printers, copiers, and huge machinery means getting equipment breakdown insurance with higher limits is in order.

So, any major transition and revision can mean that it is time to upgrade or update your insurance. Speak to your broker today for business insurance quotes Canada. Learn more about additional protection requirements you may need.

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