Solvang Insurance Agent Reports ‘When to Review Business Insurance Needs’

Posted: 6:42 pm, January 6, 2021 by Access Publishing

-The variety of insurance coverage a business might need can range from the required workers compensation, to liability, auto insurance for company vehicles, loss coverage and business partner life insurance. Solvang insurance agent, Rick Torres, recommends periodic review of business insurance to be sure businesses are getting the best coverage.

Period reviews every three to five years are standard, but there are also events that mean it’s time to sit down with your insurance agent for a good review. Those events include:

Increase in business income is a good thing, but more business and more income means higher risk. Make sure coverage in all areas is providing enough protection. An increase in business often motivates business owners to expand by adding employees, moving to a bigger location, or buying business property instead of leasing. Review insurance needs before committing to these kinds of decisions.
Hiring more employees when business grows can make a big difference towards meeting customer needs and market demands, but there are insurance obligations that come with new hires. Workers compensation insurance is required for most employees and other considerations include benefit packages for health insurance, liability for employees, especially those driving company vehicles and employment practices insurance.
Retirement finally arrives! Not only does retirement call for reviewing personal insurance policies, it means it’s time to review business insurance and the impact your retirement may have on the business you are leaving in good hands.
Selling the business involves more than just handing over the keys and banking the check. A meeting with the prospective owner and your insurance agent before finalizing the sale helps make sure the new owner has the best coverage when you finally hand over the keys.
A change in business partners means changes in liability as well as business partner life insurance. Solvang’s insurance agent, Rick Torres, said that merely canceling an outgoing partners policy may not always be the best way to handle a partner leaving. Bringing on a new partner also needs a review of the new partner’s role at the company to be sure coverage is the best.
Moving to a new facility usually comes with the property owner requiring a minimum level of coverage that protects the property owner from liability.
Adding assets, such as buying business property, additional equipment and vehicles or even business investments can place a higher liability risk on the business. Be sure insurance coverages are increased for adequate protection.
Acquiring another business falls under “adding assets,” but the insurance requirements are more complex and need a deeper review. Is the acquired business retaining its name? Are current employees staying? Is the business owner coming on board your company? These are only a few of the questions that can influence adequate insurance coverage.

Rick Torres, State Farm Insurance Agent, in Solvang, CA was born and raised on the Central Coast. A Business Administration graduate of Cal Poly San Luis Obispo, Torres has been a State Farm agent since 2002.