How Your Business’s Stage of Growth Impacts Insurance Needs
It is always a good thing to be growing as a business. Yet, as your company scales grow, your business insurance needs change. Whether you are adding on new locations or offering more services, it’s important to keep your agent in the loop about what’s happening. Doing so can help ensure your company doesn’t suffer as a result of claims later on. Here’s how to do that.
Your Policy Should Fit Your Company Today
When was the last time you updated your business insurance coverage? Have you had your agent come to your location for a full walk around to talk about your needs in the last few years? It’s time to do that now. Policies usually renew each year. At the start of that timeframe, you want to be sure you’re investing in the best business coverage for your company for the following year. Here are some areas that commonly need a fresh look.
Property Expansions or Changes
Has your building improved any in value over the last year or so? New additions or features can make this likely to happen. You may also operate in an area where the cost of rebuilding a property is very high. That could factor into your coverage needs. Also, if you update your structure to include equipment that is not on your policy, especially expensive items, let your agent know about that.
Are You Employing More People?
Having proper workers’ compensation coverage is important. You also need to have training programs in place to keep those employees safe. As you expand your company, be sure your insurance reflects the increasing risks of hiring new people to work for you.
Changes in Services and Operations
In some situations, the biggest changes come from altering the way you operate. Are you using new equipment? Perhaps you are offering more services than you used to. This is important to communicate with your agent.
Remember, your policy’s focus is on the risks you have and that your agent understands. If you add in higher-risk tasks or services, you’ll need expanded coverage. A retail shop that suddenly opens a restaurant, for example, needs to update their coverage.
The good news is that updating and expanding coverage is usually easy. Talk to your business insurance agent. Find out what coverage is best for you as you grow. And, if you make a few changes to your business model, let your agent know about them.