When something significant changes in your business, it’s known as a qualifying event. This could be anything from alterations to your business’s scope, or even ownership of the business. These events can affect your insurance needs and may require you to review and change your coverage. You typically have a two-month window to report these changes if you want to adjust your coverage.
Some changes that typically count as qualifying events:
Sometimes, you might not realize that your business has undergone a qualifying event that could affect your insurance. For instance, as your company grows, you might add more products or services, hire more employees, open new locations or acquire new company vehicles. These changes could mean you need additional insurance coverage.
Internal changes in company governance, such as succession planning, can also necessitate an insurance review. Check with your insurance company on what they consider qualifying events.
Qualifying events can impact your coverage in one of these ways:
Your insurance premiums will likely change based on the new coverage after a qualifying event. If the event increases the need for coverage, you can expect your premiums to go up.
On the other hand, if the event reduces your need for coverage, your premiums could decrease. Each situation is unique and comes with its own set of needs. However, it’s important to note that any changes to your coverage usually need to be made within 30 days of the event to ensure you’re fully protected.
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