Don’t let the growth of your company allow for unnecessary and dangerous risk.
Business owners are busy people. As their business is growing, it seems like there are never enough hours in day. One easy mistake business owners do is forgetting to have their insurance coverage grow with the rest of their business.
A new business can often opt for a B.O.P (Business Owners Policy) which easily protects against the risk exposure of an initial start up company. It’s a common and very practical solution for many types of start up businesses. For a period of time, even an existing business can find a B.O.P. a great solution. As time passed, it may be that you even raised coverage a bit as things went along. A BOP usually covers liability and property and may have other coverage added on to it. For most start ups and small business, it’s a great way to get coverage value from a lower premium than separate policies.
However, as your business grows, it is possible to out grow the original coverage you put into place. For example, are your liability limits keeping place with your growth in revenue and business assets. How about your property limits? Are you or your employees driving more? Is the company paying for vehicles or leases? Are you providing vehicles to employees? One area that is often missed is the technology growth and expenditures that can easily be missed or under insured. Suppose your business started with you a phone and a computer.
Now, you have two offices, two phone systems, and a number of computers, faxes, office furnishings and much more. Have you checked to make sure your limits will meet the requirements should you need to replace some or all of this? Has your income grown as a result? Is the liability coverage enough? Have you gotten a recent estimate from a contractor to make sure you have enough insurance to replace your current work space? Did you skimp on coverage or gamble in the early years you wouldn’t need certain coverage like business interruption insurance? Have you looked at your worker’s compensation insurance? Don’t let the assets of your business out grow the coverage in place. It only takes one major incident to financially cripple an under-insured business.
Treat your commercial insurance broker as advisor. Work along with them and keep them apprised of changes as they happen. Make sure your meeting with them at least annually to review and upgrade your policies as needed.