Having a mid-year “checkup” of your business insurance coverage is a smart move for your business, as it gives you an opportunity to re-evaluate your coverage, identify gaps, and fill those gaps as needed. This year is especially critical for a mid-year review, as a downwardly adjusted annual gross income (due to the Covid-19 crisis) could serve to lower your business insurance coverage rates.

It’s common for small businesses to start off with a basic insurance package such as a business owner's policy (BOP). This includes commercial property and general liability protection. However, as your business grows and evolves, your coverage needs do as well. You may not realize it, but changes in your business can make you vulnerable to new risks for which you are not prepared.

Check out these handy questions you can discuss with your insurance agent as you conduct your mid-year insurance review.

General Business

  • Have you changed the name of your business?
  • Did you restructure your company's ownership, perhaps switched from sole proprietorship to corporation or LLC, or added any DBAs?
  • Have you had a change in owners, officers or partners?
  • Have your business operations changed?
  • Have you decided to also service the products you now manufacture?
  • Have you changed or expanded the kinds of products you sell or services you offer?
  • Do you have equipment that is getting on in years?
  • Have you recently bought new equipment?
  • Have you added a new location or expanded into another state?
  • Have you closed a location?
  • Have you changed the mailing address of your business?
  • Have you changed the physical location of your business?

If you answered yes to any of these questions, you will need to add coverage or increase your limits on the following:

  • General liability coverage
  • Excess liability coverage or umbrella coverage
  • Professional liability coverage
  • Property coverage
  • Product recall liability coverage

Employees

  • Have you hired any new employees?
  • Do you employ remote workers?
  • Have you changed your payroll?

If yes, you will have to update:

  • Workers' compensation coverage
  • Employment practices liability coverage

Internet

  • Do you have specific coverage for hacks, data breaches and viruses?
  • Do you have a website?
  • Do you sell products online?

If yes, you will want to add coverage or increase your limits on:

  • General liability
  • Data breach coverage or cyber liability coverage

Vehicles

  • Have you added vehicles to your business operations? Have you eliminated any?
  • Has the usage of your vehicles changed, such as travel distance or their intended usage?  
  • Do you use your personal vehicle for business? Do you allow employees to use your personal vehicle for business? Or do you allow your employees to use their own vehicles for your business?
  • Has it been longer than one year since you reviewed the liability limits of your policy?
  • Has it been longer than a year since you reviewed the deductible called for by your policy?
  • Are there new drivers that must be added to your policy?

If yes, you will want to add or increase coverage limits on:

  • Commercial auto policies
  • Excess liability or umbrella coverage

Global Business

  • Do you do business with international customers?
  • Do you travel overseas for business purposes? Do your employees?
  • Do you source any materials from outside the country?
  • Do you have a manufacturing facility overseas?

If yes, you will have to add or increase coverage on:

  • International coverage
  • Excess liability or umbrella coverage

Contact Bearce Insurance for a Mid-Year Business Insurance Review

To schedule your mid-year business insurance review, contact us locally at 508-586-3400 or toll-free at 800-498-9900, or get an online quote.