Business insurance is not a static investment. That is, it needs to change with your business. Each year, your business grows in size and revenue. You may have a larger client base. You may see different applications added to your business. Some companies expand.
Along with this change is the need to change your insurance to match your current needs. One area to focus on is professional liability insurance. Does yours match your current need?
What Risks Do You Face?
Your business insurance agent can work with you to customize your insurance coverage. Do this on an annual basis. It makes sense to focus on this in the month or so before the end of the year. Many policies renew at the start of the next year. Here are a few things to consider.
How many claims did you file last year?
Look at the value of those claims. What was the average paid out by your insurer? Professional liability insurance will usually change each year based on these claim numbers. Do not overlook the importance of updating your coverage based on how many claims you had in the last 12 months.
What new risks are present?
Did you add a new service or provide a new product? Perhaps your professional liability insurance should expand? Look at your proactive carefully. What has changed?
- Are you operating in a different location?
- Has your client base grown?
- How much is the average client purchase or investment?
- Are you representing more than one company?
- Do you have employees that may put your liability on the line?
What's happening in the local market?
Another key concern is changes in the local market. Your business insurance agent can help you here. Often, industries will see a larger number of claims filed during a specific length of time. You may see a spike in lawsuits filed against you in a specific area. The company may experience an increased level of risk due to conditions in a local area.
Adjust personal liability insurance to match these changing risks. Your agent will guide you in learning what the average level of protection is. Decide, then, if you need a higher coverage limit. You may also want to expand the description of the services you offer. Be sure your agent knows your industry and the very specific types of services you offer.
Need Agoura Hills business insurance? Call Gary Warner Insurance Agency, Inc. at (818) 706-8625 today! We can help you get a fast, free policy quote.