How Often Should You Evaluate or Update Your Commercial Insurance Coverage?

Commercial insurance coverage is essential for protecting your business from unexpected catastrophes. However, it’s not enough to purchase commercial insurance and forget about it. You’ll also need to update your coverage periodically for optimum coverage.  If you are a business owner in Huntington Beach, CA, Western Republic Insurance Services can provide the coverage you need.

Situations That Require You to Evaluate Your Insurance

 Changes to your business will require you to update your insurance coverage. If you have purchased expensive equipment, inventory, or property, you will need to update your policy. If you have sold assets, you will also need to update your policy. If you are renovating a property, you may need to change your policy as well. 

If you have hired or terminated employees, you will need to evaluate your worker’s compensation insurance. 

If your liability risk has changed, you will also need to evaluate your policy. This includes changes to your business or property. If you are offering a new service that brings risk or open in a new area, you may need to increase your liability coverage. 

Periodic Review

Your business often undergoes changes that don’t seem that big but accumulate over time. If your inventory goes from 1,000 to 500,000 over the period of a few years, you aren’t likely to notice the change. Your business building may increase in value over time, leaving you with a higher value than your current coverage limits. These are a few examples of why you need to review your coverage periodically. 

Experts recommend reviewing your policy every 1-3 years. If your business is in its early stages, you should reevaluate at least every year, because new businesses experience changes at a faster rate than more mature businesses. 

If you need commercial insurance or you would like to evaluate your coverage in Huntington Beach, CA, contact us at Western Republic Insurance Services. Our agents will discuss your business and help you get the coverage you need for financial security.