When you first got your commercial liability insurance, you made sure to get the kind of coverage you needed at the time. This meant going over your business with a fine-toothed comb to understand what sort of elements of risk were involved with doing business at the time. But what happens when your business grows? Just like kids outgrow their clothes, so your business outgrows its insurance coverage in time. You will need to upgrade your insurance policy to reflect the growth of your business – the trick is when to do it.
It is difficult to set up any hard and fast rules here – no two businesses are alike – or grow in the same way. It would probably be a good idea to look at your situation once a year and to stay in contact with your insurance company, letting them in the loop of your development. Remember that in order for you to have proper coverage, your policy needs to be updated – and to do so, the insurance agent needs to know what is going on with your business.
On the other hand, you have other things to do than hanging on the phone to the insurance company every day, so you need to put things into a system that will minimize communication, while making it as efficient as possible. An obvious example of when to revise your commercial business liability insurance is when you are about to expand the operation physically, or when you launch a new product. Perhaps you are on the brink of putting new or dangerous technology to use in production. These would be good reasons to involve your insurance company.
Remember that small business liability insurance is just that – small. Don’t neglect to upgrade when the time comes, or your business could be at stake.