The Pitfalls of Not Reviewing Your Business Insurance Policy
Like the people who run them, businesses are constantly growing and changing. The needs of a business often shift after a review of the previous year, taking into account expansions, the addition of staff, or a more streamlined process. Business insurance policies serve as an essential shield, providing comprehensive coverage to safeguard California businesses against an array of risks, from potential floods to preserving invaluable inventory. Here are a few of the dangers associated with not reviewing your business insurance policies.
Business Expansions Are Not Covered
Upgrading your business operations may take the form of renovations, property expansions, or additions of newer equipment to make operations smoother. When a policy reflects a time before these changes were made, a business owner loses significantly if a disaster strikes without an updated insurance policy. Protect your business by reviewing the costs invested in your additions and what your insurance policy will cover for damages, particularly should catastrophic losses occur.
Employees Are Not Adequately Protected
Insurance can help you meet the needs of staff during a business interruption or provide when an injury occurs. If you have added staff without reflecting these additions in coverage, it can cost a business in other areas to meet employee needs. Protecting the staff that supports a business is vital to its stability and ability to function.
New Contract Requirements Are Not Met
New contracts lead to unknown risks, and these partners may also require a business to carry specific insurance coverage. Failing to review insurance policies for the specific requirements of new contracts may lead to a breach of contract and cost the business partnership. To safeguard against coverage deficiencies, have a knowledgeable insurance law attorney review your policies and contract requirements.
A New Business Structure is Not Accounted For
The restructuring of a business often demands that a new policy be established to meet the changes under this restructuring. A business may have begun as a partnership but is now transitioning to a corporation. A business insurance policy must reflect these business structure changes and should be updated as soon as possible to prevent a lapse in the appropriate coverage.
A Business is Paying Too Much in Coverage
A business may have eliminated certain assets, such as a company vehicle, the number of employees might have been reduced, or the products or merchandise lines of a business may be scaled back, and the insurance policy should reflect these changes. Just like expansions, a reduction in any part of the business without reflecting this change in an insurance policy can mean a business is paying too much. Business owners work diligently to protect their earnings and to maximize a business’s revenues, and insuring things or people who are no longer part of a business can add up to lost income that could be used to grow another part of a business.
Protect Your Business With an Annual Business Insurance Policy Review
Once a business insurance policy has been purchased, it can be simple to forget about the coverages it contains. Unfortunately, discovering these policies are inadequate for business operations often occurs after an insurance claim is filed. Ensure business insurance policies are kept up-to-date and honored when needed most.
Business Insurance Claim Denials
Business insurance policies form a barrier against unforeseen disruptions, safeguarding businesses from potential financial losses. They are established on the principle of good faith, where business owners make direct investments in insurance companies, anticipating necessary support in the event of any unexpected disruption to their operations. If you suspect your commercial insurance company acted in bad faith and denied a legitimate claim, then you need a San Diego commercial insurance lawyer at Dawson & Rosenthal, P.C. We have the necessary experience and know exactly how to file a claim, who to contact, and what pieces of evidence to gather. Enjoy the peace of mind and the knowledge that an insurer won’t try to manipulate you into a lesser settlement.