Business changes. If you’re expanding, changing your company structure or are chasing new goals, you should know how a business’s legal entity status affects your business insurance policy. image of business owner changing company name

Changed Processes and New Policies

In general, changing your business’s legal status, entity-wise, can affect your insurance. For most types of insurance, a carrier will change their named insured based upon the customer’s request. Assuming a business hasn’t changed in scope of operation, it’s a pretty simple process.

If there are changes in the process, your provider will likely have to issue a new insurance policy. The ownership will stay the same, but the aspects of the policy will change. Your provider will then present insurance options which meet your business’ ever-growing needs. The insurance world usually thrives on a business’ success. Therefore, providers are often good about working to assist expanding entities.

So, if you’ve changed your business’s legal status — and if you’ve changed its operations — you’ll need to prepare yourself for a few policy shifts. Your employee base, operations and new responsibilities will drive these changes, so make sure you’re up to date on your business’s= needs.

Workers Compensation Changes

In most cases, your provider will discuss your workers compensation policy coverage. Then, they’ll suggest changes. Because a business’ legal entity status relates to its worker s— and their benefits—an existing workers compensation policy is the first to “go,” when a business assumes a new legal status. Then, the new workers compensation package takes its place.

Remember: Workers compensation costs are usually direct functions of a business’ payroll. If your payroll changes because your business has become a corporation, an LLC or a partnership,the policy will likely need to change.

New Responsibilities

As a business grows, it accrues new responsibilities. For this reason, insurance agencies commonly alter policy premiums and discounts. If your business has a higher amount of liabilities, it will have heftier business insurance needs. Likewise, if your business’ legal entity has changed to adopt new workers, a new property, a vehicle fleet or a number of assets, your policy will change.

Understandably, policy changes are very situational. In the business world, legal conflict happens. Employees get injured. Property needs change. While an insurance policy might not change directly because of a new legal entity status, the new status’ resulting changes can result in a number of policy changes. Make sure you’re always up to date on your business’ insurance options, and identify any possible discounts before considering a legal entity status change. Call and talk to your agent today at 716-634-7070.

Additional Information:

5 Insurance Coverages You May Need for Your Business

Does Your Business Have Business Interruption Insurance? It Should

Posted 12:58 PM

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
×

In case of an emergency claim issue

please contact Mark at 228-2412

or look at your policy for a direct reporting claim number.

Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
© Copyright. All rights reserved. Powered by Insurance Website Builder