What Happens to Your Coverage During a Facility Expansion or Relocation?

Adding square footage, moving to a new building, or opening a second location are milestones worth celebrating. However, these are also moments when your existing manufacturing insurance policies can fall short, creating serious exposure. At Pitcher Insurance Agency, Inc., we can help you maintain continuous and appropriate coverage, especially during an expansion or relocation.

How Facility Changes Affect Your Insurance

Physical changes to your business property can trigger coverage gaps. Some common pressure points include:

• Commercial property insurance: Your policy insures a specific location and a declared property value. A new or expanded building may change both.
• Builders risk insurance: You may have to purchase this policy to cover structures being expanded.
• Business interruption insurance: If a move temporarily disrupts operations, your existing policy may not reflect lost income tied to the transition.
• General liability insurance: Higher foot traffic and new square footage can affect your exposure and your coverage needs.
• Inland marine insurance: New locations often involve moving assets, requiring coverage during transport or off-site storage.
• Workers’ compensation insurance: If a new or renovated location will change your headcount, you’ll need to address your policy accordingly.

Steps to Maintain Continuous Coverage

Notify your insurance carrier or broker before construction begins or a move is finalized. Request a policy review that accounts for the new location, updated property values and any changes in payroll or operations. Ask specifically about builders risk insurance for the construction period and confirm when your commercial property policy can cover the new address.

How Can We Help?

When your business grows or moves, we can review your insurance policies and identify any gaps before they become problems. Contact Pitcher Insurance Agency, Inc. to schedule a coverage review before your next expansion or relocation gets underway.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.