For a business owner, there are few things as rewarding as watching your company grow. However, in the midst of scaling operations and hiring new employees, it’s easy to forget that your insurance should grow with you. Here’s a quick guide to updating your insurance coverage as your company expands.
When Should You Update Your Insurance Coverage?
Regularly reviewing and updating your business insurance is important for several different reasons:
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It ensures that all of your assets are protected
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It helps you save money by eliminating redundant coverage
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It enables you to cover the greater liabilities that come with a larger business
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It helps you remain compliant with all relevant regulations
Any time your risk profile changes, it’s a good idea to review your insurance policy and work with your independent insurance agent to make changes if needed. These are a few instances where you’ll likely need to update:
Adding a Location (or Moving to a New Location)
Whether you’re moving your company or opening a second (or subsequent) location, you need to update your commercial property insurance. Doing so protects your building in the event of covered losses. Liability insurance can also protect you from lawsuits if a customer or other visitor is injured on the property.
Adding a New Company Vehicle
Having one or more company vehicles opens you up to significant liabilities. As soon as you add another vehicle to your fleet, make sure you also add it to your insurance policy.
Hiring Employees
While Texas doesn’t require employers to carry workers’ compensation insurance, most states do. However, even if this coverage isn’t required, having it can help shield you from lawsuits if an employee gets hurt on the job.
Working With Subcontractors
In some cases, working with third parties comes with additional risks. You may need to expand your liability coverage to keep your company protected.
Expanding Your Technology
Cybersecurity is constantly improving, but hackers are also getting smarter. Cyber coverage for your business protects you in the event of a data leak or other significant issue.
How to Make Sure Your Insurance Grows with Your Business
If your insurance policy hasn’t kept pace with your company’s growth, you’re not alone. A 2023 study of small businesses found that an estimated 75% were underinsured.
Set a Regular Schedule for Policy Review
Ideally, you should update your company’s insurance policy whenever your business experiences one of the above events. However, it’s easy to forget.
While you should still strive to update your policy when major events happen, it’s not a bad idea to set a regular interval (like every quarter) to reevaluate your policy.
Work With a Risk Management Professional
You don’t have to decide when to update your insurance policy on your own. A business attorney with experience in your field (or another professional focusing on risk management) can assess your company and help you decide how and when to change your insurance coverage.
Establish a Relationship With an Independent Insurance Agent
Because business insurance changes with your company over time, establishing a long-term connection with an independent insurance agent can be extremely helpful. Unlike agents who work with one specific company, independent agents obtain quotes from several companies and help you choose the right one for you.
Let Us Help Safeguard What You’ve Built
You’ve worked hard to grow your business. Don’t risk losing it all because you didn’t have enough insurance coverage. The independent agents at Hulett Insurance are proud to offer one-on-one client services to help you find the right coverage. Contact us for a free quote today!
