When starting up a business, it’s important to purchase insurance. The insurance protections that a business needs when starting out, however, won’t necessarily be sufficient in the future. As a business grows, it’s insurance needs change. If you own a business in Agawam, MA, review its small business insurance policies periodically so that your business is properly protected even if its needs change.
Check Your Business’ Small Business Insurance Policies After Completing Its Taxes
Review Small Business Insurance Policies Regularly
In the midst of running a business’ daily operations, it’s easy to forget about its insurance policies. Setting aside a regular time to review your business’ policies will help you remember to make sure your business has all of the coverages it needs.
While there isn’t one specific interval at which business owners should review their business’ policies, checking policies at least annually is generally a good practice. A yearly check isn’t so frequent that it interferes with other responsibilities, yet it also is not too infrequent that coverages remain neglected for a long time. Also, many small business insurance policies are written on a yearly basis, so checking them each year gives business owners an opportunity to make changes before another policy is written.
If you’re going to review your Agawam, MA business’ insurance policies annually, consider scheduling the yearly review after you finish filing your business’ taxes. Taxes are an annual task that almost every business owner must do, and they provide a good picture of a business’ financial status. Finances aren’t all that you should consider when reviewing insurance policies, but they often play a role when decisions about insurance policies are made. As an added bonus, any documents that were required for filing taxes will already be well organized.
Check All Aspects of Your Business’ Insurance Policies
When reviewing your business’ insurance policies, be as thorough as you can. Pay specific attention to whether your business:
Needs any additional insurance policies
Should increase the limits of any one policy it has
Is exposed to risks or has property that’s excluded from coverage
Is violating any policy’s terms and conditions
You’ll want to review all of your business’ policies, including:
Specialized Commercial Property Insurance Policies (e.g. Inland Marine Coverage)
Other Insurance Policies (e.g. Health, Disability, and Workers Compensation Coverages)
If your business has made any significant changes in the past year, like opening a new location in Massachusetts, expanding into a new region or state, or offering a new product or service, you may need to make significant changes to your business small business liability insurance, commercial property insurance, and other insurances. Even if you set up policies before expanding -- which you should have done -- you might have a better idea of what protections your business needs once those operations have been going on for a little while.
(Conversely, if you’ve closed down a location, left a region, or ceased offering a product or service, you might be able to reduce your business’ coverages).
You probably won’t need to make any drastic coverage adjustments if your business hasn’t undergone any major changes in the last year, but there may be small tweaks that should be made.
Have an Agent Serving Agawam, MA Assist You
Thoroughly reviewing your business’ insurance policies requires expertise. For help with an annual insurance checkup, contact one of Agawam MA’s independent commercial insurance agents. An agent will be able to review all of your business’ small business insurance policies and make any necessary changes. You may even want to ask the agent you work with to contact you in late spring next year, after taxes are due, to help you with another annual review. That way, you won’t have to remember to call them when it’s time for the next yearly insurance checkup.