Is your business experiencing growth? While this is good news for the entrepreneur, it also comes with challenges. As your business grows, it undergoes changes and encounters new needs. As you adjust your revenue projections, expand your market, and invest for continued growth, don’t forget another area that should be examined. It’s likely that your insurance needs are also changing.
To ensure your coverage adequately matches your current risks, remain in close communication with your insurance provider. Your agent can make recommendations for appropriate changes to your policies. Consult with your agent if you experience any of the following situations that often warrant an adjustment in insurance coverage:
Staff changes: Are you hiring additional staff? Have you transitioned from part-time staff to full-time employees? Are your workers taking on new duties? As you bring on new employees or expand work tasks, it’s important to update your insurance policies to reflect these changes. Appropriate coverage is necessary to protect you and your business if workplace injuries should occur.
New address: Have you outgrown your location? Relocating to a new setting to accommodate your expanding business involves a lot of work. In the midst of moving, don’t forget to update your insurance. The new building may have a different risk profile that alters the coverage you need.
New features such as security systems may also affect your premiums. Before you choose a new location, discuss the insurance ramifications with your agent so you can budget appropriately.
Equipment upgrades: The equipment your business uses directly affects your insurance premium. If you purchase new equipment to meet growing needs or update old equipment to modernize your business, you must also update your insurance policy.
Expanded services: Are you offering new services or new items? This can affect your liability. Review your current list of goods and services with your insurance agent to verify that you still have appropriate coverage. Add further liability coverage if needed to protect your business from new or additional risk.
Increased revenue: If your business is growing, you are likely experiencing an increase in revenue. While this is good news, it can affect your insurance needs. Keep an eye on policy limits to make sure they remain in alignment with your revenue streams. As you grow, you will probably need to increase coverage limits. Consult with your agent to determine when this bump in coverage should occur.
Specialized growth: Consider any unique needs of your business based on your industry and the types of products and services you offer. As you expand these specialties, you may need to alter your insurance coverage with more specific policies.
For example, if you have grown from a mom-and-pop paper-invoicing shop to a fully digital enterprise, you may want to consider adding cyber insurance.
Vehicle additions: Whether you add a company car for your own use or expand your fleet of delivery vehicles, it’s essential to update your commercial vehicle insurance coverage.
The policy details will depend on the type of vehicles you purchase, how they are used, and who will be driving them. Work with your insurance agent to create policies that are suited to your growing needs.