Business Relocation & Insurance: Everything You Need to Know

Insurance often becomes an afterthought during significant business changes. However, failing to update your insurance agent with the details of your new business location can lead to extensive problems down the line.

Here, Central’s commercial underwriting team outlines exactly what your agent needs to know when you relocate your business.

Understanding Your Coverage

A standard commercial property policy covers your building, fixtures, and permanently installed items, as well as your business personal property, such as furniture, machinery, and equipment. Additionally, coverage can extend to newly acquired or constructed property, including new buildings and business personal property. 

Keep in Mind: Other key types of business-related property are typically insured under other types of policies, such as Crime Insurance for money, Commercial Auto Insurance for company vehicles, and Inland Marine Insurance for mobile equipment.

When to Notify Your Insurance Carrier of Your Business Relocation

Although you might be tempted not to inform your agent of your business relocation until after you’re officially moved in, notifying them of the anticipated move in date and your plan for when operations will commence is crucial in securing full protection.

This is because extended coverage has limits on the amount paid in the event of a loss and requires you to report the new acquisition within 30 days. For example, if you acquire a new building on July 1 but don’t inform your agent within 30 days, any loss on September 1 at your new building wouldn’t be covered.

For that reason, it is much safer to alert your carrier of your plans ahead of time, and then call to confirm that your business’ premises has been officially relocated on move-in day.

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Here, Central’s commercial property experts outline the 3 steps you should take before embarking on a business relocation:

1. Notify Before Possession

As outlined above, it’s important that you notify your insurance agent before taking possession of the new building. Typically, a lienholder such as a bank or landlord will require proof of insurance coverage before handing over the keys. They might also request to be listed as an additional insured or loss payee to protect their interest.

2. Know Your Property Values

Have the values of the building and your personal property ready. Your agent will guide you on the necessary information to determine these values.

3. Immediate Reporting

If you’ve already taken possession of the building and haven’t reported it to your agent, contact them immediately.

Central Insurance & Business Relocation

At Central, our teams are here to help make your business’ transition into a new location as easy as possible. Be sure to reach out to your insurance agent or call us directly to not only update your property coverage address but to ensure the limits you’ve set on your policy are still accurate considering your new location.

Keep in mind that each state presents unique challenges when it comes to insurance. Below, we’ve compiled a list of popular states for business relocation. Click on each article title for insights into the local economy and expert advice from our Territory Sales Managers on what makes insuring your business in that state unique.

• Insuring Your Business in Arizona
• Insuring Your Business in Utah
• Insuring Your Business in New Mexico
• Insuring Your Business in Idaho
• Insuring Your Business in Virginia
• Insuring Your Business in Wisconsin
• Insuring Your Business in North Carolina
• Insuring Your Business in Nevada