Business hires its first employee

Action:Immediately review Workers’ Compensation requirements.

In Illinois, even one part-time employee generally triggers the Workers’ Compensation requirement.

Business moved to a new location

Action:Notify your insurance agent.

Update:

  • Address
  • Square footage
  • Building information
  • Business Personal Property
  • Occupancy
  • Lease requirements

Business added a new service

Action:Tell the insurance company.

A new service can change the business classification and coverage needs.

Customer asks for Certificate of Insurance

Action:Send the exact insurance requirements to your agent.

Do not send only a customer name if the contract requires special endorsements.

Landlord asks for insurance

Action:Review the lease requirements.

Commercial leases may require:

  • General Liability
  • Property coverage
  • Additional Insured
  • Waiver of Subrogation
  • Umbrella
  • Business Income

Payroll increased significantly

Action:Notify your agent, especially for Workers’ Compensation.

Updating estimated payroll during the policy year may reduce a large year-end audit surprise.

Received an audit bill

Action:Request the audit worksheet.

Review:

  • Payroll
  • Sales
  • Classifications
  • Subcontractor costs
  • Certificates
  • Officer information

Dispute incorrect information promptly.

Business had several claims

Action:Request current loss runs and review the causes of loss.

Underwriters may want to see corrective action such as:

  • Safety procedures
  • Property repairs
  • Employee training
  • Security improvements
  • Driver controls

Insurance company nonrenewed the business

Action:Start looking for replacement coverage immediately.

Provide your agent with:

  • Nonrenewal notice
  • Current policies
  • Loss runs
  • Updated business information

Do not wait until the expiration date.

Business purchased expensive equipment

Action:Notify your insurance agent.

Make sure the Business Personal Property or equipment limit is sufficient.

Business begins storing customer information electronically

Action:Review Cyber Liability coverage.

General Liability should not automatically be assumed to cover cyber or privacy losses.