Upgrading Your Policy? 7 Questions to Ask Your Business Insurance Adviser

Is it time to upgrade your business insurance policy? If it’s your first time doing so, you might not be familiar with the entire process. Besides, the application is a lot different from the renewal and upgrading. Before agreeing to anything, it is essential to be aware of the process of upgrading to a business insurance policy and understand the changes that will occur compared to your previous policy.

However, as a first-timer in upgrading their business insurance policies, it can be hard to identify the factors that you should be aware of. In this article, we’ll discuss the basic questions you can ask your business insurance adviser.

1. What Has Changed that Needs to be Addressed?

Since your insurance adviser is updated on the latest happenings in your business, you can ask them about the factors that were included in your last policy. Some of these factors include the number of newly hired staff, an increase in revenue, a new location, the introduction of new products and services, and the establishment of a new branch.

It may also help if you can tell them about your plans for the future, such as the projects, activities, and expansion, when there’s a possibility that you’ll need insurance. This allows your insurance adviser to help you identify whether your insurance policy should be updated based on the current status of the business and future activities.

2. What Risks is the Company Not Currently Covered For?

As your business expands, you might not be aware of all the risks you’re exposed to. Whether you already have an insurance adviser or you just hire one, they should be aware of how your business operates. Once they’re aware of your business operation, they can conduct a risk assessment, and you can easily ask them about the current risks that aren’t covered by your business insurance policy.

Specifically, you can ask your insurance adviser about the emerging threats in your industry, the exclusions in your current policy, and the possible coverage options you can avail of while upgrading.

3. Is the Current Liability Coverage Still Sufficient?

Oftentimes, busy business owners tend to forget about the changes happening in their business. And when they do, they can be unsure about whether their current liability coverage is still enough to cover the entire company.

So, once you talk to your insurance adviser, you should ask specific questions, such as:

• Based on the size of the company and the industry it belongs to, is my current business insurance coverage enough?



• Are there other risks that I should be aware of?



• There are some changes in the payroll and the number of employees in the company. What are the necessary changes that should be made?

4. Is Business Interruption or Income Protection Insurance Relevant to the Company?

Every business needs to move forward, even if certain circumstances are preventing your business from operating. When this happens, you should be able to continue what you can do, especially when you’re protected with business interruption insurance. This type of insurance allows companies to continue their operations even when something happens that causes them to stop working for a while. It can be a natural disaster, a lawsuit, a fire, or theft.

So, when discussing business insurance with your adviser, it’s essential to ask about the benefits of business interruption insurance for your business.

5. How Would the Upgrade Affect the Premiums and Deductibles?

Upgrading can significantly help with the challenges your business may face, but it can also affect the amount of your current premiums and deductibles. Although it’s not advisable to get the cheapest option, there are many ways to lower the amount you need to pay, such as getting bundles and discounts.

Besides, working with an insurance adviser can help you score some discounts, especially if they’ve been in the industry for quite some time.

6. Is the Company Compliant with Industry or Legal Requirements?

Insurance advisers are often aware of the legal and industry requirements of various businesses. So, when planning to upgrade your business insurance policy, you can ask if the current situation of your paperwork is in the right order; otherwise, this can become a liability and affect your insurance policy.

7. Can You Explain Any New Terms of the Policy?

When upgrading your business insurance policy, you should also be aware of the changes in the terms or coverages. So, if you’re not familiar with the terms stated in your new policy, don’t hesitate to ask your business insurance adviser about it. This allows you to understand if the new terms still fit with your business needs. If not, you can negotiate with the insurance provider, and let your adviser help you with it.

Final Thoughts

Upgrading your business insurance comes with a lot of new information that you should understand as a policyholder. In doing so, asking the right questions to your business adviser is a must, especially as a non-expert.