Inherited a Business: Did I Inherit the Insurance?

Understanding Commercial Insurance for New Business Owners

Let’s say you’ve been working with a company for an extended period. Perhaps you’re related to the owner, you’ve been taken under their wing, or they’ve seen your potential and groomed you to be their successor. Over time, you’ve grown to know the business inside out, and now you’re about to take the reins. But what about insurance?

The Pre-Existing Insurance Settings

If the former owner were diligent, they would have added your name to the policy before the business was handed over to you. If they’ve passed away, you should review the policy to ensure your name is registered. If the previous owner is still alive but has retired, they may still technically own the property while you manage the operations. It’s essential to update all the stakeholders before proceeding.

Transition of Liability

It’s important to note that now all liability falls into your hands. You could be held accountable for your employee’s negligence, and your workers’ compensation coverage might change. Be sure to stay updated about what workers’ compensation will cover for your employees, and make sure you have ample liability insurance as the ownership transitions to you.

Professional Insurance Guidance with Great Michigan Insurance

If you’re in the Marshall, MI, area and need any assistance with commercial insurance, don’t hesitate to get in touch with Great Michigan Insurance. Our helpful and knowledgeable agents will guide you, ensuring your new venture starts its journey toward success on a solid footing.