Change In Operation

A Change in Operation applies to commercial or business insurance policies.

When you place your initial policy part of the submission will be a definition of what you do for a living. Your day-to-day activities in your business need to be declared and the policy will usually show a short "elevator speech" version of what it is that you do. This is your operations and needs to be kept up-to-date.

When placing this initial insurance your adviser can often give you immediate coverage if your business is seen as something relatively low-risk. For example, if you have small retail store that sells lawn furniture then it is likely that you could place this insurance policy immediately.

Six months down the road you start to sell children's furniture or gas barbeques. Now you need to advise your broker or agent. Why? Your policy may have an exclusion for children's furniture or selling outdoor equipment. This is when you check in with the broker and make sure that your new scope of operations does not contravene your current insurance. You also update the information so if there is a claim then there are no surprises.

Ask questions of your agent or broker. Understand what your policy is covering. You need to be in control of this aspect of your business.