What is a qualifying event?
A qualifying event is a change in your business’s situation that has an impact on your insurance needs. Typically, there is a two-month window in which you need to report such changes in order to be eligible to alter your coverage.
For example, if your web hosting business starts offering additional services, you will need to contact your insurance provider to alter your policy so it still adequately covers you. Most insurance policies have a qualifying event clause so you don't have to wait until policy renewal to adjust coverage when your business makes significant changes.
What are common qualifying events for IT businesses?
A qualifying event for an IT business can mean anything from opening a new location to hiring additional employees to expanding your equipment. The following is a list of qualifying events that your IT business might experience:
- Opening a new location or warehouse
- Hiring new employees
- Changing your business structure, such as moving from a sole proprietorship to an LLC
- Adding new commercial vehicles
If you believe your business has experienced an insurance qualifying event, contact your TechInsurance agent to find out how you should update your coverage.
Why should you update your coverage for a qualifying event?
If your IT business experiences a qualifying event for insurance and you don’t update your coverage, your business could be exposed to risk. Because technology is continually advancing, IT businesses in particular can experience unforeseen changes. While growth is a good thing, you need to make sure that your coverage is up to date to reflect those changes.
You may also want to consider purchasing business interruption insurance, which can help your IT business recover from sudden changes or a temporary shutdown. If your business must halt operations because of a natural disaster, supply chain problems, a fire, and other events, this policy can help cover your rent, taxes, loans, payroll, relocation costs, and other expenses.
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