CASES WHERE YOU NEED TO RE-EVALUATE YOUR BUSINESS INSURANCE
Starting your own business requires extensive planning and preparation, not to mention a significant amount of money as working capital. This can be acquired through personal funds or getting a loan from a bank. Regardless of how the capital was acquired, it’s agreed upon that starting a business is a huge investment. And securing an investment through insurance policies is the best practice. Insurance that covers your investment and professional indemnity should any untoward and unforeseen circumstances arrive. Having an insurance policy for your business is not cheap, and precisely the reason why you should get the best and most appropriate for your business.
Here are instances where you should reevaluate the insurance you have for your business:
Your current insurance policy is near expiration
Insurance policy contracts are valid only for a definite length of time, up to which you will have to renew the contract, and discuss possible coverage and price adjustments. This is the best time to re-evaluate if your current policy that you’re paying is worth the coverage and security it’s offering, or if there is something else out there which is a better fit.
Your sales and revenue increases
When your revenue goes up, it possibly means your business is growing, which is a good thing. However, certain insurance policies have rates that are dependent on the business’ revenue. You may be surprised that your rates have ballooned up if you don’t update your revenue estimates properly. Make sure you discuss with your current insurance provider or consider other options if there are big revenue changes happening.
Your business undergoes through operation changes
Your insurance policy rate depends on what type of business your have and its nature of operation. If changes in the business operation occurs, you might see your rates go up as most insurance providers consider these changes as “material increase in hazard”. If any operational changes occur in your business, it’s best to re-evaluate if your current policy fits in to the new business model.