Signs you should increase insurance coverage for your business

Your business is an investment that needs protection. However, many business owners do not carry enough insurance to cover potential losses.

Here are signs that it’s time for you to increase your business coverage.

Your revenue has increased significantly

Any jump of 10 percent or more in revenue is a sign that you should have your insurance coverage reevaluated. An increase of 25 percent or more is a clear indication that coverage needs to be increased.

You are employing more people

Businesses are required to carry workers’ compensation coverage on all of their employees. These policies will only cover a set number of employees for a given price. Once you have more employees than covered, you need to take out additional coverage or move up to a larger policy.

You have changed location, expanded or opened a new location

Different facilities require different types of coverage. Every time your location changes, there is a chance that your coverage needs will too. Have your insurance provider check your facilities to determine if your current coverage is sufficient.

You have purchased new equipment

Whether you are expanding your inventory or replacing outdated machinery, every new purchase has the possibility of altering your coverage needs. The more expensive the equipment, the more likely it is that you need new or additional coverage.

You are taking your business on the road

If your business has expanded to need one or more vehicles, it is necessary to look into business auto insurance coverage. Even if you have a personal policy on your car, you usually need additional coverage if it is being used for your business. Contact your provider to learn about the restrictions on your current policy.

If your business has seen any of the above changes, contact your insurance broker to find out if you need additional coverage. While it might mean more upfront costs, it will provide peace of mind and keep your business safe in the long run.