There are a few tell-tale signs that show you need to adjust your insurance policy. Whether your professional office has grown, downsized, or switched direction, your business policy can change to match your needs. This applies to multiple kinds of professional offices, including medical practices, real estate brokers, law, property management, and more.
The important thing is to update your coverage as soon as possible in order to minimize risk. Our agents are here to help, and we can support you with various coverage options based on your needs.
Your Revenue Has Significantly Increased
Sometimes, policies show that businesses are yielding an entirely different amount of revenue than is coming in. This can leave you with insufficient coverage if you experience some kind of loss. By updating your policy, you are saving money in the long run.
You Have New Employees
It’s wonderful if your office has expanded enough to need more employees! However, you are exposed to greater risk for workplace injuries and employment practice issues with each new addition.
If you don’t update your policy to add these employees, you could expose yourself to claims for worker’s compensation and other workplace liability issues that you don’t have coverage for.
You Have New Commercial Vehicles or Equipment
If your office relies on transportation as a part of its work process, it is especially important for you to update your policy regularly with the addition and removal of vehicles. This will help provide coverage in case of road accidents; otherwise, your business could be left out to dry.
If you have equipment that is necessary to run your office, be sure that it is listed on your policy as well. Many lenders also require that you have coverage as soon as possible if you finance the equipment, so adding coverage to your policy will smooth that process.
You Have New Services or Products
It’s possible that you regularly launch new services or products for your clientele. Even if this happens frequently, your policy needs to be updated each time because business policies contain different liability coverages depending on the product. If your customers experience an issue with the launch of a new product, you may not have the coverage you need if the product is not yet listed on your policy.
You Have New Locations
With each new location opened comes more liability risk. While it’s exciting to have growth opportunities, that also means that more people are coming and going, which increases the risk of a claim. Verify with your agent that your policy covers all the locations that you are operating.
You Have More Customer Data
If you possess any private client data, it must be protected. With increasing investment in online services to store customer data, there is also the increased possibility of cyberattacks. This data can be used to the advantage of online criminals, and your business can be left exposed to liability claims for the customers involved in an information breach.
If your storage of customer data is increasing, your cyber liability limits need to increase as well.
Common Insurance Coverages
You might see these coverages on your office’s policy:
- Building
- Business personal property including property of your customers
- Bodily injury and property damage
- Personal injury and advertising coverage
- Damage to property rented to you
- Premises medical coverage
- Tenants’ improvements and betterments
- Condominium unit owners for loss assessment and miscellaneous real property
- Condominium association
Additional business coverages available to you are:
- Preservation of property and debris removal
- Water damage, liquid, powder or molten material
- Business income
- Extra expense
- Pollution cleanup and removal
- Civil authority
- Money orders and counterfeit money
- Forgery or alteration
- Increased cost of construction
- Business income from dependent properties
- Glass expenses
- Fire extinguisher systems recharge expenses
- Electronic data
- Interruption of computer systems
- Limited coverage for fungi
- Newly acquired or constructed property
- Personal property off-premise
- Limited coverage for outdoor property
- Personal effects for your property and property of your members, managers, and employees
- Valuable papers
- Accounts receivable
If you feel your policy could benefit from one or more of these coverages, you can add them with the help of your agent.
Real-Life Example: Anderson Properties
Your property management office, Anderson Properties, has recently acquired three new employees and a couple new cars. You haven’t had time to meet with your agent to add the employees or cars to your business policy, but you assume that everything will be fine until you have the chance to meet.
One of your new employees takes one of the newly bought vehicles to meet a potential renter for a townhouse tour. On the way there, he runs a red light, and he T-bones another vehicle with the company car. Because you haven’t added the vehicle or the driver to your policy, you have to pay out of pocket for the other driver’s car damage and injuries.
As you can see, it is essential to protect you and your employees by updating your insurance policy. Make a mental note to contact your agent as soon as possible after a shift in your office.
Frequently Asked Questions
Do I need to wait for renewal to make policy changes? No. Your agent can help you make changes to your policy as needed.
Is there a limit to how much my policy can change during the policy term? No. If your policy needs a refresh based on new products, employees, vehicles, etc., update your policy as soon as possible.
If my office is shrinking, should I update my policy? It depends. If this is a consistent trend, you may be paying for more coverage than you need. Talk with an agent to decide what kind of coverage your business needs versus what might be superfluous.
How long does it take for new coverages to kick in? Once you meet with your agent to discuss the changes you need, your policy can be updated on the date you agree on. You can’t backdate coverage in most cases.
Final Takeaway
Your business needs can change quickly based on your office’s gains and losses. Make sure your insurance shifts with them, and you will be set up for success in the long run.
If you feel your policy needs a refresh, get a free quote, and an agent will contact you to discuss your needs.
Disclaimer: The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts.
