Common Q&A
07/02//2010 15:00
By Jenny Bortman
What happens when I make changes at my business?

Change - it seems to be happening everywhere and to everyone. Some change can be exciting - such as growth and updates; some - like downsizing - feel negative. Regardless of the type of change, it is important to keep your insurance updated. Here are some key examples of why it is crucial to keep your agent aware any change, even those that seem minor.

1)      Changing or updating your legal entity name
Often new business owners start out as a sole proprietor and later, for various reasons, will change to a corporate entity of some sort. Many times this is done to protect the owner against someone coming after them personally. Creating a corporation is a great idea, but it is just as important to update your insurance policy to reflect the exact name. Your insurance policy responds to the name insured listed on the policy. So if you created an LLC but didn't change advise your agent of the change, there could potentially be no coverage for a claim against the LLC.

2)      Adding new UV equipment
Whether your salon is adding more UV equipment or if your business is adding UV equipment as an ancillary service, alert your agent about your ideas prior to making the change. If you are already in the tanning industry there should only be a slight increase in premium. Besides adding the equipment to your Professional Liability, make sure your Business Personal Property and Business Income limits are sufficient. If you are adding UV equipment as an ancillary service, you will need to see if your current policy will cover the UV exposure. Many times UV is excluded from a standard policy.

3)      Adding new ancillary services 
Ancillary services are a great way to potentially increase foot traffic and revenue. It is important to review with your agent the types of services you are thinking about offering. Make sure the new services can be covered and determine what additional premium they will create. Even if you are using independent contractors, it is recommended that you add the services to your policy. At least discuss the pros and cons with your agent.

4)      Moving locations
It may sound obvious but if you are moving to a new location let your insurance agent know before the fact. Let them know if you will be doing the physical move yourself. If you are using a moving company make sure they provide coverage on your equipment while in transit. Give your agent the details about the new location and the expected time to be out of the old location. You will need to provide information about your new location, just as you did when you first obtained insurance.

5)      Hiring employees and/or managers
It is wonderful to grow and add additional staff to your business! There are many reasons to hire employees, but by having employees creates additional risk for you as an owner. Now you need to consider other coverages such as Hired and Non Owned Auto, Workers' Compensation, Employee Dishonesty, Employment Practices Liability, Employee Benefits, and more. Discuss with your agent the types of coverages you might need to properly

NOTE – The insurance company’s liability for coverage in the scenarios described herein is subject to the terms, definitions, conditions, exclusions and limits of liability of the policy. These examples in no way obligate the insurance company, Universal Insurance Facilities, Ltd. nor any party to the program to respond to claims for coverage not granted by the policy.