By its very nature, a small business is dynamic — changing to meet customer demands, new market conditions, and fuel growth. Some of these adjustments and advances, especially when they involve expansion or revenue increases, warrant modification in your small business liability insurance. When it comes time for your business insurance renewals, how do you know if your small business has changed or grown significantly to warrant more liability coverage?
Consult this checklist of some questions to consider for small business insurance renewals:
- Has revenue grown significantly? If your bottom line profits have increased, your current small business liability insurance may be lacking in coverage.
- Have property lines changed? Whether your property lines have expanded or contracted during the course of the year, property insurance coverage needs to follow suit, since it depends in part on the size of facility your business occupies. For example, a new larger location may have more perils, which not only increases your safety risk, but liability as well. On the other hand, if your new location has more modern safety systems, such as a comprehensive facility-wide security alarm, you may be able to reduce your coverage.
- Have government regulations changed? Some government regulations may impact insurance coverage. Ask your insurance provider if there are any government regulation changes that have impacted your small business liability coverage.
- Has your inventory levels changed? Here again, whether your inventory levels have expanded or have been reduced, it can trigger you to carry more or less insurance on your business. If you don’t have enough insurance, your assets (inventory) may not be fully covered. On the other hand, too much insurance coverage can mean that you’re inflating your costs unnecessarily.
Once you get into the habit of periodically reviewing your small business insurance renewals policies, you’ll find it gets easier every time. However, you should always make sure to consult with your insurance agent for a final determination, such as a BOLT small business insurance expert to help you determine what coverage you need.