As your business grows, make sure your commercial insurance coverage is up to date.
You went into business knowing you had a good thing going. You’ve worked hard and things are really starting to fall into place. Business is good, growing, and you continue to exceed expectations and your plan. Your banker is ecstatic, your employees are excited, and it’s a fun time to be in business. Have you let your commercial insurance broker know how well your business is doing?
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 description 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!
As your business grows, your business insurance needs change. The business insurance package you put into place is not static any more than the 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 under insured, or, worse yet, have no coverage for that event. Let’s look at how to avoid that happening in your business.
Again, with the quick example above, business is thriving. It’s probably time to up 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? What coverage may fit now that didn’t early on? Do you need to raise your general liability limits? Is it time for commercial vehicle coverage?
The rewards of growing a business are numerous. 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 while growing your business.