Chapter 4: Insuring Your Independent Brokerage
Part 2: When Should Stock Brokers and Insurance Agents Update Their Business Insurance Policies?
When small-business owners purchase their business insurance plans, they breathe a sigh of relief. Now that you're protected, you only have to think about your coverage when your premium is due. Out of sight, out of mind — right?
Not exactly. You'll need to revisit your policies any time your business experiences a significant change. After all, when your business evolves, your business protection plan should, too. Most insurance policies include provisions that allow small-business owners to make changes to their policies in order to address significant events, even if they happen in the middle of the year.
When your business changes, your insurance needs may change, too.
It's extremely important that you notify your insurance agent when the following significant events occur:
- Your business relocates. Any type of move can affect your insurance coverage — whether you move from your home to rented space or from rented space to owned commercial real estate. If you relocate, be sure to call your insurance agent to make sure your Property Insurance and General Liability policies cover your new location.
- You start offering new services. When you offer new services, your Professional Liability Insurance needs will change. Be sure to notify your agent so your old policy doesn't leave you exposed.
- You purchase a business vehicle. If you purchase a vehicle for your business, you'll need a Commercial Auto policy. Keep in mind that the year, make, and model of your business vehicle can greatly impact your premium.
- You hire employees. You're an independent contractor now, but if you ever hire employees in the future, your state laws will likely require you to carry Workers' Compensation Insurance. This policy protects your employees when they suffer occupational injuries. To learn more about your coverage obligations, check out our guide, "Workers' Compensation Insurance Laws by State."
In conclusion, if you are ever in doubt about whether or not a change to your business will affect your insurance coverage, call an insureon agent. We're available during regular business hours to answer any questions you have about your small business insurance needs.
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