Commercial insurance: when should you review your coverage?

Why you shouldn’t wait until renewal time

Is your business expanding? More clients, a broader offering, a larger inventory, new equipment… Great progress!

But if a machine or building is damaged and your insured value no longer reflects your assets, the consequences can be serious, including material losses, slowed sales and interrupted operations.

That’s why a simple rule applies: every major acquisition—machinery, buildings, equipment—warrants a call to your broker, even when it’s not renewal time.

The right time to adjust your coverage

Don't wait for annual renewal to update your coverage. Your commercial insurance policy should be revised as soon as your operations change significantly.

Coverage amounts depend on two key elements:

• What your business owns
• The revenue it generates

If either factor changes, your insurance should be re-calibrated.

Many business owners postpone updates due to lack of time or because the risk feels low. But that delay is often what turns a manageable incident into a financial crisis.

Assessing your needs

Take a moment to map out your business as it stands today. What has changed since your last renewal?

Your products and services

• Have you added new products or services?
• Expanded into new sectors?
• Do your online sales require specific coverage?

Your commercial property

• Did the value of your buildings increase?
• Is your inventory larger or more variable?
• Have you acquired new locations, furniture, or higher-value equipment?
• Has your vehicle fleet expanded?

Your team

• Are you hiring in areas with specific risks?

Your broker can guide you based on the specific risks your business is exposed to.

Coverage areas to prioritize

Some changes require quick action. Talk to your broker if you are:

• Renovating or modifying your buildings
• Adding furniture or specialized equipment
• Modernizing your IT or phone systems
• Acquiring high-value materials or goods

In these cases, your coverage amount should be increased.

Be mindful of seasonal fluctuations

Does your inventory change throughout the year—seasonal activity, holiday periods, bulk orders?

Some policies include coverages that automatically adjust during peak seasons. Your broker can tell you whether they apply to your situation.

Beyond property: don’t forget liability

Your civil liability exposure also grows with your business: more employees, diversified operations, more clients in your facilities, a larger geographic footprint.

These factors influence your risk profile and should be reflected in your policy.

The particular case of commercial vehicles

• Do vehicles travel out of province or out of the country?
• Will new drivers be using them?
• Has their intended use changed?

Your coverage should be adjusted accordingly.

The best approach? Speak to one of our specialists

Your business has unique characteristics, and your coverage should reflect them. Your broker can help you assess your real needs and maintain protection that fits, today and tomorrow.

Renewing your commercial insurance isn’t just a formality. It’s an essential management habit to protect what you're building.