Updating the current commercial liability policy makes sense as your business grows and innovates. If you've introduced a new product line, hired more workers, and opened more branches, an upgraded liability cover caters to the additional risks.
Raising the value of your commercial insurance on time gives you peace of mind. After all, you've noticed commendable changes, and the existing cover might be a risk in itself. Indeed, slight improvements in operations and revenue are critical, and a new insurance policy covers additional risks.
Here are instances when you must increase your commercial liability coverage.
1. You've Renovated Or Moved Your Office
Your commercial liability policy terms insure your business against specified risks captured in the policy. If you've moved your office or expanded your workshop, your business value and associated risks change.
Indeed, you must adjust the coverage if you move to an area with high crime rates or a dense population. In addition, if you renovate your office, you must be covered for the costs of remodeling and upgrading equipment.
Also, if you move operations from your home office, it voids the homeowner's insurance, and you'll need commercial property insurance.
2. You've Added New Products And Services.
When your business records significant growth, you'll have more muscle to launch new products and services. If you do, more risks hover over your investment. Rebranding and adding new products increases your risks.
As such, you need to boost your commercial liability to mitigate possible loss. New products may present defects and consequent lawsuits. Luckily, product liability insurance cushions you against lawsuits and financial loss. You must consult your agent before you order new products. They'll tell you whether you need new product insurance or upgrade the existing coverage.
3. You've Purchased New Equipment Or Vehicles.
Your business surmounts the challenges of the digital economy if you've installed modern equipment. For instance, upgrading your computers necessitates cyber liability insurance. This safeguards critical business data and hardware if hackers compromise your network.
In addition, purchasing new dispatch vehicles increases business risks significantly. Luckily, upgrading your policy safeguards additional business value if an accident or theft occurs.
4. You're Changing The Business Entity
If you've shifted from a sole proprietorship into a limited liability company (LLC), your commercial liability obligations change. If you've employed more than three workers, you must facilitate workers' compensation.
As such, you must fix up your current policy to protect your interests against lawsuits. With a renewed commercial insurance cover, you're safe if employees get injured within your premises.
If you want to upgrade your business insurance for compliance and risk mitigation, talk to a reputable commercial liability insurer near you.
For more information on commercial liability, contact a professional near you.