Contractors: Protect your expanding business!
Article revised on 23 November 2018
Your business is doing well and your company is growing? It’s the kind of great news that often comes with administrative adjustments that are required to maintain and pursue the growth of your business. One of the steps you should consider taking is contacting your insurer. According to the Insurance Bureau of Canada, your commercial insurance contract should be modified as soon as a change in your situation impacts your company’s level of risk. Follow our guide to find out in which situations you should contact your insurer!
1. Changes in your professional activities
Your insurer should be notified of anything new that affects your business. Here are two examples:
- You decide to use your personal vehicle to transport your tools. As far as your insurer is concerned, this vehicle becomes a vehicle used for commercial purposes. By advising them of this new development, you will be sure to maintain an adequate level of coverage.
- You begin offering new products or services.
It’s best to notify your insurer of any new fields of practice. Since the risks incurred vary from one product or service to another, your insurer can confirm whether your new activities are covered under your contract or whether your contract can be modified to provide better coverage.
In certain cases, your insurer may simply not be in a position to cover your new activities. Should this happen, you’ll probably want to rectify the situation before incurring a loss.
2. Purchase of equipment or vehicles
Boom lifts, forklifts, excavators, trailers and other vehicles used as part of your business should be reported to your insurer so that you can be compensated in the event of damage to this equipment or damage is caused to third parties when using the vehicle.
3. Increase in inventory
Has your inventory grown substantially? To adequately cover your equipment, it’s vital for your insurance to provide coverage for property stored in your buildings based on their actual value. This way, in the event of a loss, you can be sure you will receive compensation that will allow you to replace the items.
4. Increase in total sales or hiring of staff
Business is booming? Best to protect your assets! If your total sales have grown significantly or if you recently hired staff, it’s time to update your insurance coverage.
5. Purchase, construction or renovation of buildings
Did you purchase or have a new place of business or warehouse built? Renovating your buildings? Your insurer will help you protect the investments you make when purchasing equipment or making improvements to your property.If you have any doubts, contact your insurer! In the end, your insurer is a business partner whose role is to protect the investments you make toward your business!
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