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When to Review Your Commercial Insurance Coverage

Your business needs can change with time. Your commercial insurance policy should reflect these changes. Scheduling a commercial insurance review every two or three years to keep it up to date is important. A review should also be considered if your business needs change considerably. Several events call for an evaluation to ensure that your business has the necessary coverage it needs at all times. Financial security is a must in these uncertain times. This is important to protect your business. This article discusses some scenarios which call for a business insurance review.

Upgrade or Downsize

Whether your business is expanding and adding new product lines or downsizing and closing the doors of one or more locations, a commercial review is a must. Upgrading and downsizing both have dramatic effects on the financial aspect of your business. Your commercial business policy needs to reflect those changes and be kept up to date. Adjusting your coverage whenever changes are made will ensure that if something does happen, your company is fully covered and that its financial future is as stable as possible. For example, if your revenue increases significantly, you will owe back money for the time that your business exceeded your original revenue estimate. However, if your profits have decreased drastically, you may have been paying more for your business insurance required for that time.

Additional Assets

The purchase of additional assets may also need a policy review. Whether it is additional inventory, a new building, or new vehicles for the company’s fleet, it is essential to upgrade your commercial insurance policy to ensure that you have enough coverage. Scheduling a commercial insurance review will enable your agent to analyze your inventory and develop a policy that can adequately cover your additional assets and make sure that you have the peace of mind you need at all times.

Opening or Closing a Location

Opening another location is a massive upgrade for any business. Whether you open one or more new locations, it is guaranteed that your insurance needs will dramatically change. The same is true if you close a site. Any time a change is made at this level, it is essential that a commercial insurance review be performed right away. This prevents you from financial disaster if an event occurs and your company is not sufficiently covered to handle it.

Security Upgrades or Other Improvements

Security upgrades like professionally monitored security systems, hiring security guards, or adding automated locking systems are essential if your business is large enough to require them. Taking these precautions will lower your risk of loss. A commercial insurance policy review will consider these new security measures and may offer you discounted rates. Understanding the importance of reducing your overall risk will help you manage your business more effectively and will even help your budget in the long run.

A commercial insurance review is an efficient business management tool that you can use to ensure that your company always has the coverage it needs. Whether you schedule a business insurance review every couple of years or have just made improvements to your business and thus need to review your commercial insurance, keeping your agent up to date on these changes is a must.

When you are ready to schedule your next commercial insurance review, contact us at Scautub Agency in Scotia, New York. Our agents are always available and will work with you to make sure your business is financially secure.

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