Don’t let your business grow without growing your business insurance coverage.
Business is booming, things are going gangbusters for your company. Your bank and accountant are happy and excited, your new employees are excited, and everyone else you do business with is excited. Make sure your commercial insurance agent is kept in the loop and also part of the excitement.
When your business grows, your business insurance needs change. The business insurance package you put into place is not static any more than any other changes in your business. There is nothing worse than growing your business, seeing great success, and having one incident cause financial crisis by being underinsured, or, worse yet, have no coverage for that event. Let’s look at how that could happen and also be avoided.
Usually when a business first opens, a somewhat standard business insurance package is put into place. Depending on the business, some type of general liability insurance and business property insurance is purchased. Many times, the coverage is adequate, and sometimes coverage is lean to help keep premiums down. Now, back to the business noted above, the first key is new employees. As soon as an employee is hired, with rare exception, you are required to have workers compensation insurance. Besides the employee benefit, with workers compensation coverage, the employee cannot sue the business for being injured on the job in most cases. Imagine what could happen if it weren’t in place!
Lawsuits and penalties for not having coverage can be extreme.
As noted with the quick example above, business is thriving. It’s probably time to up the coverage limits, perhaps even write new insurance. Raising your coverage limits is often the first step in risk management. As your business grows, it may be time to look at business interruption insurance which may also be known as loss of income insurance. It’s quite possible you need mechanical breakdown insurance, or now should add some additional disaster insurance such as flood insurance if your area warrants it. Talk with your commercial insurance agent to determine if product liability insurance may be needed or any other types of coverage like professional liability insurance.
The rewards of growing a business are why you do it. Don’t risk it by not growing and evaluating your risk exposure along the way. Make time to speak with your commercial insurance agent at length at least once a year, perhaps more if needed to grow your business while protecting it too.