Many small business owners have one question – “How flexible is my small business insurance policy?” Many times, small business owners need to increase their policy limits for a specific job or for a limited time and are unsure if they can do so without rewriting an entire policy. The short answer is “yes” your policy can be fairly flexible depending on your carrier, although, if you are adjusting your policy monthly, this might not go over well with the carrier.

Keep in mind that most adjustments to policy limits are increases to the amount of coverage necessary. If you are lowering your coverage limits, then something was probably wrong with your policy to begin with, or you are running the risk of being underinsured if a suit is ever brought against you.

You should also keep in mind that the amount of coverage you are able to utilize is based on your policy limit when the claim is filed, not when the job is delivered. This means that once you are done with a project, you should not immediately lower your policy limits in case a suit is brought against you. It is sometimes difficult to determine how much coverage you will really need when taking on a new job, so thankfully your existing policy can be flexible to handle necessary adjustments to your policy.