Let’s consider two scenarios which could make a difference in the life of some common businesses.
Fern Halloway owned a flower shop in Houston, TX. She ran the business on her own with occasional help during the holidays. One spring, Fern stumbled upon a great deal on a yellow Prius, the perfect car for small deliveries. She had never offered deliveries before, but the timing seemed right for adding a new service to her customers.
Fern, of course, got insurance on the vehicle as soon as she changed the title, but never thought to let her agent know the car was to be used mainly for her company’s use. She put a cute decal on the driver’s door with her shop’s logo, and quickly got to work with deliveries. It was only a week after her deliveries began that Fern ran a red light, colliding with a vehicle.
Damage to both cars was extensive, and the other driver was hospitalized for a few days due to a concussion. Fern’s liability coverage helped out with the other vehicle and medical bills, but the other driver’s insurance company pressed charges against Fern’s flower shop for their client’s loss of income, pain, and suffering. Fern took a great loss, and sadly ended up selling her shop to help pay the legal fees.
Nate ran a tax service for a small Texas town. He usually hired four extra workers for the months between New Year’s and mid April to keep things running smoothly, but business had been picking up during the past few years. Nate decided to update his computer system and add several more computers and employees to his usual workforce. He kept careful track of the expenditures and carefully discussed the details with his insurance agent. They both understood the importance of not only adding new products to the current policy, but the extra risk for fraud when adding more employees. Nate’s agent revised the business policy to include the updates, added an umbrella policy for extra liability coverage for Nate, and fidelity bonding insurance, keeping Nate covered for any possible perils his business might face.
Do either of these stories resonate with you as you consider your own business insurance? Have you made changes in the recent past that you should mention to your agent? Keeping your agent up to date on your company’s current state of affairs could mean the “death or life” of your company.
Give Armstrong insurance a call today to talk to a knowledgeable agent about how we can keep your company covered to its full extent.