Running a business in Chicago, IL, brings numerous opportunities and ample excitement. However, it also presents various challenges, some of which are insurance-related. At NCIB Group Inc., we frequently receive inquiries regarding commercial insurance. Hence, we aim to provide straightforward responses. For instance, we’re often asked when it is necessary to update commercial insurance.
Changes in Your Assets
Protecting your assets is a vital component of your commercial insurance. If the value of your assets alters significantly (by over 10 percent), it’s advisable to update your policy. Reducing assets could potentially lower the cost of your policy. On the other hand, if your assets are growing, it’s crucial that your coverage adapts accordingly.
Even if insuring the assets directly isn’t a concern for you, increased values increase your liability risks in the event of a lawsuit. Payouts are often influenced by how much money you possess, with your assets playing a significant role.
Changes in Your Business Structure
Structural changes to your business, such as adding new partners or leaders or changing personnel that affect the business’s structure, necessitate an update in commercial policies. These changes affect questions such as who receives payment in the event of a claim and who has the authority to make claims on the policy.
The structure of your business can influence how your insurance functions. Therefore, it’s essential to keep your insurer informed regarding these changes.
Changes in Your Operations
Changes in your operational regions or services, or a reduction in operations, directly affect your liability risks. For instance, if you introduce a delivery service to your business, you would need to insure your delivery drivers. If you expand your business to another state, the operational rules there may be different.
Such changes necessitate a dialogue with your insurance representative to ensure your policy aligns with your business structure.
If you’re ever uncertain about how a change might affect your commercial insurance, don’t hesitate to discuss it with us. At NCIB Group Inc., we possess extensive experience in dealing with these matters and are always ready to assist. Our goal is to help keep your Chicago, IL, business protected under all circumstances.
