How Your Commercial Insurance Needs Change Over Time

It’s natural for your business to evolve over time. As it does, you likely remember to update your hardware and software, but keeping up with changing insurance requirements is also important (and easily forgotten). How, exactly, do a business’s insurance needs change over time?

First, some things stay the same. All businesses should have basic commercial coverage, including property insurance, which covers damages to business property, and liability insurance, which covers damages to other parties. But as your business evolves, additional specialized coverage may be warranted. Below are some options.

When you get employees

When you transition from a sole proprietor to an employer, you need workers’ compensation insurance. Workers’ compensation insurance protects against employee injuries that occur on the job. Most states require businesses with employees to carry some type of workers’ compensation insurance, but you should have it regardless.

As you buy more equipment

When you first start out, you may have a laptop and some accessories. Eventually, however, you may want a scanner and copier, then servers, and possibly even industrial equipment, depending on your business. You’ll want to protect against the breakdown of this equipment by obtaining mechanical breakdown insurance. But it’s not just industrial equipment (such as boilers) that is covered; mechanical breakdown insurance also covers damage to office equipment, such as computers.

If you can’t be out of business temporarily

For some businesses, a property damage or loss has no effect: your employees take their laptops and work from home. But such an incident could put other companies out of business for a while. Interruption insurance is what those businesses need. It reimburses you for various expenses (from salaries to rent) and losses (such as net profits) that would have been experienced during the period your business is interrupted due to property damage or loss.

When it’s time to lease or build

Eventually, the small business owner moves out of his or her stereotypical garage into an office, and this triggers a requirement for more insurance. But the type of insurance you need depends on whether you rent or own your office space.

If you have a lease, consider a commercial renter’s policy. It covers damages to any improvements you make to your space, as well as damage any employee negligence causes to the space.

If you own your space, you’ll want to look at some coverages that help you rebuild. Your basic commercial coverage, including property insurance, will help with that. But you may want to consider some other options. For example, property insurance will not cover removing debris, so you may want debris removal insurance. Also look at ordinance insurance, also called law insurance, reimburses you for the expenses associated with demolishing and rebuilding to code when your building has been partially destroyed. You can even buy glass insurance to cover broken windows.

Where to turn

We can help you review your current insurance coverage and determine if you need any of these specialized coverages. Please call or email us today. We’re always here for you.