Carrying business insurance protects your enterprise from unforeseen events that could significantly impact your financial stability. From natural disasters to fraud and liability claims, there are many risks to running a business, especially if you have a commercial property. While many entrepreneurs secure a policy when they first start, certain situations require you to update the coverage. Below are several instances when you should contact your agent and change the policy. 

When Do You Need New Business Insurance Coverage? 

1. Upgrading Location 

Carrying insurance to replace or rebuild your physical business property can reduce the out-of-pocket expenses associated with keeping your company running after a fire, flood, or other disaster. However, if you move to a new location or make substantial changes to your existing building, your current business insurance policy will only cover up to the limits of the existing building. This could be a drastic difference, especially if the new area is much larger. Updating the policy to reflect the value of the new space ensures this doesn't happen.

2. Changing Industry Regulations

Federal and state laws regarding businesses change frequently, and your business may be subject to new regulations that dictate the types of business insurance you must carry. Industry groups may also recommend best practices, or stipulate that your business must carry a certain kind of coverage to qualify for certifications. Failing to comply with these regulations can lead to fines and sanctions, so regular reviews and upgrades are crucial to meet these changing rules.

3. Updating Computer Network

Even small businesses are vulnerable to cyber crimes. A cyber attack can be devastating, as the costs can include everything from lost productivity and investigations to the effects of a data breach on your operations and reputation. Cyber insurance policies are becoming more common, especially with the rise of ransomware attacks. This type of insurance pays to help you recover from the breach, compensate customers, and repair damaged hardware. If you are doing more cloud-based work or have upgraded your computer network, this type of insurance is crucial.

4. Purchasing New Vehicles 

Upgrading the items you use to work, such as commercial vehicles, requires an immediate review of your business insurance. This is because the policy covers each vehicle, and newer models are often more expensive. Without an update, the new trucks or vans may not have coverage at all, which is both a legal and financial issue. If this applies to your business, or more employees are driving their own cars, talk to your insurance agent to ensure you have adequate protection. 

If you need help building a comprehensive business insurance policy, contact A.W. Adams Insurance in Clayton, GA. These experienced professionals have been helping entrepreneurs throughout Rabun County secure coverage for over 50 years. They also offer car, home, life, and boat insurance. Call (706) 782-5100 to request a quote, and visit them online to learn more about their services.