Many times, companies invest in new equipment, new technology and new security. Each investment aims to make your business better. Yet, you are also adding new assets to your business. As a result, it may be necessary to improve your business insurance value. That’s the amount of coverage you have available for your property protection. Do you have enough?
Take a Look at Your Policy
It is important to review your business insurance coverage at least one time a year. Do this with your agent. Discuss changes in the company during that time. Review the claims made, if any. Talk about liability risks, claims, and needs at this point. Then, look at the value of your coverage. Here are a few common reasons to consider increasing your coverage.
You’ve Added New Technology
Many companies are automating a variety of components of their business operations. New technology is helping companies do more with less. Yet, whether you are buying new equipment itself or just the software for it, you need to consider adjusting your business insurance coverage. It should list the equipment you have. This is important for any high-value components you add.
Specifically, think about your computer system. Some companies spend hundreds of thousands of dollars on new computer systems. Yet, a storm could cause a power surge, creating damage to those systems. A fire could occur, destroying them. You must make sure your policy addresses the losses that might impact these systems.
What About Decreases?
Some companies may find it is beneficial to reduce their coverage. This is rare simply due to the increasing cost of managing property and assets. Yet, it goes without saying that your plan should match your business. If you have significant changes in your property ownership, this warrants an update. Keep in mind, simply because size decreases, that might not mean value will as well. Work with your business insurance agent to find the best possible coverage for your company. This can change year-to-year.
Why It Matters
Imagine a fire occurring. You need to have a high level of protection to protect all of your assets. Yet, business insurance only pays out based on the limit of the policy. Without enough coverage, you may be unable to reopen your business. Instead of this risk, update your policy.
Many updates will be small. You may not notice much or any change in your costs. Yet, you are likely to see a significant amount of improvement in your level of protection. That can play a role in your business’s security.
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