Business owners know the value of quality and comprehensive business insurance. Making sure that policy reflects your specific risk factors is essential, though. For companies that store inventory, equipment or other assets outside of their specific location, a modification of insurance may be necessary.
Take a few minutes to update your policy. It could provide significant protection for your company down the road.
Where Are Your Assets?
Business insurance should provide coverage for all of the company's assets. This includes:
- Electronics and computer systems
- Any other item necessary for the operation of the business
Insurance often protects the location itself and the assets stored at that location. When business assets are not at a single location, your insurer needs to know this. The policy may need updating to reflect the true risk present.
Consider the following example. A company stores inventory at a second location. A fire breaks out at that location. The inventory suffers significant damage. Without coverage of that location, the business loses value to that inventory. This can be a significant financial blow.
How Should You Update Your Business Insurance?
Discuss the risk with your agent. It may be possible to add a secondary location to your policy. If you own or lease that location, ample insurance is necessary to reduce risks to it.
- If you own the secondary location, such as a garage or warehouse facility, consider bundling the building into your current business insurance plan. This may reduce costs while also protecting all assets.
- If you lease the location, the property owner's insurance policy may not protect you. Like any other rented space, you still might benefit from your own insurance coverage.
Your insurer may encourage you to buy more business insurance. Doing so could reduce more of your risks.
This is critical, since some companies make the mistake of not insuring a secondary location. Some decide not to do this because they only use a secondary location during peak seasons, such as at the start of spring or the holidays. Nevertheless, the risk of theft, flooding, fires and other hazards remains present year-round.
Protect your assets. Invest in a commercial insurance plan that recognizes your specific operation. Be sure to list all assets and locations on your business insurance plan. This can prove to be very valuable to you in the long term when an incident occurs.
Need insurance? Call Koda Insurance Group at (325) 695-9999 for a free Abilene business insurance quote.