Budget Concerns: How Much Insurance is Enough?

Six Scenarios When You Should Update Your Company's Insurance Coverage

31 August 2021

Dustin Duncan

Having your company adequately insured with a good business insurance policy is essential to protecting your company's finances. You need to periodically update your business insurance coverage to make sure it is appropriate to your company's needs.

The following are six scenarios indicating that you should make some changes to your company's insurance coverage.

Your business insurance premiums are a difficult expense to manage in your company budget.

You definitely need to reconsider your business insurance policy if insurance costs are eating up too much of your budget. Business insurance can be a significant company expense. At the same time, there are often many options for cutting insurance costs.

You should research potential discounts and methods for bringing down your premiums with a new policy if your existing policy is too expensive for your company. 

Your business insurance provider is raising your premiums for no apparent reason.

It's not uncommon for insurance providers to raise premiums on a client at some point. However, you should only accept a significant premium increase if you have recently filed claims on your policy. If your insurance provider raises premiums for no reason, you might want to look elsewhere for a new policy. 

You've made some significant changes to your company facilities.

You should consider reevaluating your insurance coverage if you've made recent investments in your facilities. Commercial property coverage is typically a significant part of a business insurance policy.

If you've invested in your facilities, you may be able to enjoy policy discounts. This is especially true if you've added new security features to your facilities. If your updates have led to an increase in facility value, you may need to increase your policy maximums to cover the full value of your facility. 

Your company has grown significantly since you originally purchased your policy.

Over time, your company will hopefully grow. If you have more clients and employees than you did previously, you might be in need of more business insurance coverage. You should definitely reevaluate your policy in response to significant growth at your company. 

You're not happy with the service you've been getting from your current insurance provider.

Customer service is an important aspect of a business insurance provider's offerings. If you're finding it hard to get a representative on the phone when you have questions or assistance needs, you might want to switch to a different business insurance provider. 

You've invested in some valuable new equipment.

You also might need to increase policy maximums if you've invested in new equipment that's worth more than your previous equipment. This way, you'll protect your investment in your equipment and be able to replace your equipment with a claim if it becomes severely damaged. 

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