Growing a business is hard work, yet very exciting. But growth can also introduce new risks, and the insurance coverage that made sense when your business was smaller may not provide the same level of protection now.

Working with an experienced commercial insurance professional can help you identify where your coverage may need to grow with your business. Below are types of coverage a growing business may want to consider.

Business Owners Policy: A Foundation for Many Small Businesses

For many small businesses, a Business Owners Policy (BOP), can provide a foundation for managing common risks. A BOP typically combines coverage for property and liability and may also include business interruption coverage, depending on the policy.

As your business grows, your BOP may need to be reviewed to make sure your coverage limits and options still reflect your current operations.

For example, have you:

• Added expensive equipment or inventory?
• Moved into a larger space?
• Added another location?
• Increased your revenue?
• Started offering new products or services?

Commercial Property Insurance: Protecting What You’ve Built

Growth often means acquiring more physical assets. That could include equipment, machinery, inventory, furniture, electronics, tools or even a commercial building.

Commercial property insurance can help protect your business’s physical assets against covered losses. Depending on your policy, coverage may extend to your building, outdoor signage and fencing, tools, inventory, equipment, furniture and other business property. If your business has invested significantly in new equipment or inventory, your existing limits may no longer reflect what it would take to replace everything after a covered loss.

Liability Insurance: More Customers Can Mean More Exposure

As your customer base and operations grow, so can your exposure to liability claims.

The amount of liability coverage appropriate for your business depends on factors such as your industry, business size, customers, location, employees and overall level of risk. A business taking on larger contracts or serving more customers may have different liability needs than it did when it first opened its doors.

Workers’ Compensation: Adding Employees Changes the Equation

Hiring employees is a major milestone for a growing business, and it also introduces additional insurance considerations.

Workers’ compensation insurance is designed to help cover costs associated with qualifying work-related injuries and illnesses, including medical treatment and certain lost wages and benefits. Requirements vary by state and business circumstances, so it’s important to understand the requirements that apply to your business.

As your workforce grows, your workers’ compensation coverage and payroll information should be reviewed regularly to ensure they accurately reflect your business.

Commercial Auto: When Your Business Takes to the Road

A growing business may eventually add company vehicles, delivery vehicles or other vehicles used for business purposes.

Commercial auto insurance can provide coverage for vehicles used in business operations, including liability and physical damage coverage depending on the policy.

Cyber Liability: Growth Can Mean More Data

Cyber liability insurance can help businesses address certain costs associated with cyberattacks, data breaches and other covered incidents. Depending on the policy, coverage may help with expenses such as legal costs, notification and credit monitoring services, and income loss associated with system downtime.

Cyber risk isn’t limited to large corporations. A growing small business can have valuable customer, employee and financial information that needs protection.

Directors & Officers Insurance: Leadership Risks Can Grow, Too

As a business becomes larger or more complex, its leadership structure may change. Businesses with boards of directors, executives or officers may want to consider Directors & Officers (D&O) insurance.

D&O coverage can help protect directors and officers from certain claims alleging wrongful acts committed in their capacity as company leaders.

This can become particularly important as ownership, management structures and business responsibilities evolve.

Surety Bonds: When Growth Brings New Contracts

Growth can also mean pursuing larger projects or contracts that require a surety bond.

Surety bonds can play an important role for businesses in industries where contracts require guarantees related to performance, payment or other obligations. The type and cost of a bond can depend on the risk, bond type and term.

If you’re pursuing larger contracts than you have in the past, ask whether new bonding requirements could affect your insurance and risk management strategy.

Your Insurance Should Grow with Your Business

Consider an insurance review when you:

• Add employees
• Increase inventory
• Open another location
• Adding new vehicles, equipment, or property
• Introduce new products or services
• Take on larger contracts
• Change how your business operates
• Experience significant revenue growth

Your business is growing and your insurance should grow with it. Contact the Midwest Heritage Commercial Insurance team to discuss your current coverage and what may need to change as your business moves forward.

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