Most business owners purchase their insurance in the early days and then just renew each year. As your business grows and adapts to the business world, change is inevitable. To avoid an instance where you outgrow your insurance coverage, you have to regularly update your policy.
The 6 tests below will help determine whether your policy may be outdated. Discuss these with your insurance provider to ensure you are fully covered.
1. Significant growth/decline in revenue
Meaningful changes in revenue often means you need to change your coverage levels. For example, if you double your revenue, you might want to increase your Liability limit from $1M to $2M
2. Starting international sales
Many policies need you to explicitly declare to which countries you are selling. So if you just started expanding internationally, be sure to update your policy
3. Change in the products or services you offer
Your insurance policy is based partly on the business you are in. If that changes (i.e., you introduce a new line of business), you need to update your policy to reflect the new reality.
4. Hiring or releasing employees
As your mix of employees, contractors and outsourced work changes, your insurance needs change as well.
5. Getting new or more office space
Your Commercial Property insurance is tied specifically to your office. So if you move, or add new offices, your policy should be updated.
6. Buying new equipment
Contents insurance has a specific limit of equipment you are covered for (e.g., $30,000). If your business has grown, chances are you have added more equipment, and thus should update your limits.
If you have questions about your policy or are close to your renewal, check out www.zensurance.ca and we would be excited to help!
Zensurance is Canada’s leading online commercial insurance broker. We offer a full range of insurance products to small businesses, with a particular focus on digitizing businesses and technology startups. We understand what it is to work with new technology, and know the most common risks of which you should be aware. Based on that (and a lot of analytics), we recommend the ideal insurance coverage for your business.