Looking at Business Goals for 2023 and Ensuring Proper Coverage
Just as individuals make resolutions for the New Year, businesses do the same, but they are called “goals.” This time of year, many companies prepare a business strategy that focuses on desired changes/accomplishments. While most of the attention is paid to business expansion and improvements, often adjusting your insurance coverage to accommodate for growth is overlooked. When you make changes in your business, avoid being under or over-insured by reviewing your policies.
Aside from the daily hazards of running a business, such as cyberattacks and employee turnover, there are changes you make to your business that may have an impact on your business insurance needs. Not to mention still having to grapple with enduring obstacles due to COVID, the war in the Ukraine, Hurricane Ian, and the current inflation, your business insurance coverage needs to keep pace with your business needs and the current economic climate.
Business insurance, also known as commercial insurance or business owner’s policy (BOP), provides companies with financial protection from unfortunate situations that could cost thousands if not millions in income, from which it would be difficult to recover. Business insurance includes property damage, general liability, and business interruption, but as your company gets bigger, damage potential and company responsibilities also increase.
What May Warrant A Change In Insurance Coverage?
Staffing Changes
Are you planning on adding employees? Perhaps you are returning to a pre-COVID in-office nine to five Monday through Friday work schedule, or you may be embracing a hybrid or total remote scenario. With new employees and introducing new work environments, comes the need to review your Workers Compensation coverage.
Operational Changes
Have you or are you going to introduce a delivery or curbside s pickup service for your customers? If so, you need to factor in liability issues for drivers and vehicles. It’s important to have proper coverage on vehicles your company owns or operates, but you may also need coverage for when employees drive personal automobiles for company-related trips.
Equipment
New equipment, such as tools, machines, or vehicles? Your commercial insurance coverage will need to accommodate for all the newly purchased items.
Upgrading Your Building or Workspace?
Whether you own or lease your space, you should be insured for the cost to rebuild and replace what you have in it. With fluctuating costs of building materials and supply chain disruption, this should be reviewed even if you are not making any modifications.
Expanding/Upgrading your product line?
If you’re introducing an invention or improved goods, make sure you have enough product liability insurance for protection against potential defective products.
Business Entity or Corporate Leadership Changes
Looking to grow and add directors and officers who make decisions on behalf of your company? Any time you add key personnel or change the ownership structure, you need to revisit your D&O insurance.
Growth is great, but if you are not covered for new liabilities, you can suffer a financial loss. The professionals at Charles Leach can help you prepare for business changes and help you obtain the appropriate coverage to safeguard your business.
We are here to help you protect your ever-growing and changing enterprise. Make sure your business is properly insured by calling us at 814-275-3224.