There is no worse time to discover you have the wrong insurance than when you have a claim. Having the right general liability insurance policy to meet the changing needs of your business is critical in these litigious times. It’s not enough to just purchase one and assume it will fulfill all future needs; you need to review it periodically. Most insurance experts recommend that businesses review their general liability policy at least annually, but there are a number of other times to review it. Every time you do, you have a chance of catching an error, omission or flaw that was missed before. Here are the top 7 reasons you should review your liability insurance policy.
A Growing Business
One of the key reasons you have insurance is for peace of mind so that you can concentrate on growing your enterprise. When you take on new customers and clients, your liability needs to change. As businesses scale up, their liabilities disproportionally increase as well. It’s critical to review the policy now to evaluate if it meets the new challenges. You may even qualify for discounts that result from economies of scale or bundling.
Adding Team Members
Hiring new employees is always exciting but it also brings more risk. New employees are especially prone to mistakes and problems and are at heightened risk of injuries to both themselves and others. They may feel less comfortable pointing out hazardous conditions and typically have less situational awareness. Make sure your liability policy covers them.
Moving to a New Location
Your liability will change whenever your location does. This is a great time to review your general liability policy. You should also review what your new lease and local laws require.
New Equipment and Big-ticket Items
Upgrading or adding to the equipment used in your operations could alter your general liability insurance needs. Speak with your agent about how it will impact you specifically.
Ownership or Partnership Changes
When the business’ legal ownership changes, all partners need to review the policy. If you leave the partnership or sell the business, make sure you aren’t listed on the policy anymore. If a new partner comes on board, they need to be added.
The Changing Law
Insurance law evolves over time; federal and state laws are frequently changed or amended. Cities and counties may also enact requirements for both insurance agencies and local businesses. Make sure you inquire about legal changes at least yearly – and any other time you hear about them.
Ultimately, Review to Save Money
The other main reason you have general liability insurance is to save you money. Insurance can be expensive, but not remotely as expensive as not having it. A review can cause impressive cuts to your premiums. Some factors that can lower premiums include:
- Security and system equipment upgrades
- Improved credit ratings
- Various different discounts
- Downsizing
Changes that seem minor to you can have a major impact on both the policy and the premiums. Your agent is happy to advise you any time you have made changes that will lower your premiums – or any other changes – as well as how your general liability insurance can be optimally applied to your business.
