Business is booming and life is good right now. You’re hiring more employees, updating equipment and thinking about expansion. Everyone is excited from your family, your employees and your suppliers. Have you included your commercial insurance broker with all the updates?
The business insurance package you put into place is not static any more than the any other changes in your business. As your business grows, your business insurance needs change. There is nothing worse than growing your business, seeing great success, and having one incident cause financial crisis by being under insured, or, worse yet, have no coverage for that event. Let’s look at how to avoid that happening in your business.
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 put into place. Many times, the coverage is adequate, and sometimes 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 wasn’t in place!
In the example above, business is growing and expanding. It may be time to increase the coverage limits, perhaps even write new insurance. As your business grows, it may be time to look at business interruption insurance which may also be known as loss of income. 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 broker to determine if product liability insurance may be needed. Do you need to add professional liability insurance? Cyber liability insurance? Product liability insurance?
Growing a business can lead to big rewards. Don’t risk it by not evaluating your risk exposure along the way. Make time to speak with your insurance agent at length at least once a year, perhaps more if needed to grow your business while protecting it too.