You started your business with the idea of being successful, but growth also means change. Your business may have outgrown adequate coverage against claims of injury, property damage, and other liabilities that a general liability insurance policy can provide.
As your business grows and changes, keeping your general liability insurance in step is crucial. Talking to an independent insurance agent with Hulett Insurance can help you assess your risks and coverage options.
To keep your business running smoothly, learn about when you might need to update your general liability insurance.
Why Is General Liability Insurance Important?
General liability insurance, also known as commercial general liability insurance or CGL, fills an essential role in the risk management strategy of your business. It can guard your business against financial losses from legal claims after unforeseen incidents such as:
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Bodily Injury: It may pay medical costs and legal fees of someone from outside your company who is injured at your business or because of your operations
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Property Damage: It may pay to repair or replace someone’s property that is damaged by your business operations
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Personal and Advertising Injury: It may pay for damage arising from claims of libel, slander, copyright infringement, and other types of non-physical damage
Beyond guarding your business against financial losses from liability claims, a general liability insurance policy can also help you compete. Many companies require businesses to carry CGL before signing a contract.
When to Update Your General Liability Insurance Policy
Many factors can drive how often you update the liability insurance for your business, but knowing when to review your policy can help avoid gaps in coverage and potential financial loss.
Consider reviewing and updating your general liability insurance at the following times:
Once a Year
Schedule a regular review annually before your policy renews. Your business may not have undergone major changes, but your insurer may have changed its rates, and slight changes in your business may have impacted your risks.
After Changes in Business Operations
Your business may have grown. You hired new employees, opened new locations, introduced new products, entered into new markets, or changed your business model. A review can help determine whether you have new or increased risks and keep your coverage limits in step with your growth.
After Changes in Your Industry
If laws and regulations governing your industry change, you should review your general liability insurance policy to help keep your company in compliance and avoid exposure to financial penalties that can hurt your business.
When You Sign a New Contract
Your contracts with clients, vendors, and other businesses may include a clause requiring liability or other types of insurance coverage. Your review can help your company meet requirements for higher coverage limits for liability or determine whether you need to purchase additional insurance, such as commercial property insurance.
No one can provide a firm answer for the exact time to review and update your general liability insurance. However, marking an annual review on the calendar and getting additional reviews after big shifts in the company can help you stay abreast of emerging risks and keep your business prepared for unforeseen issues.
Get Up to Date With Hulett Insurance
Understanding the circumstances that could drive the need to update your general liability insurance can go a long way to guarding your business from financial losses.
At Hulett Insurance, we are independent insurance agents who take the time to understand you and your business, and we can help you assess and identify risks to keep your insurance needs in line with the growth of your company.
Give us a call today to schedule a review or discuss your insurance needs.
