Growth is exciting for any business owner. More customers, higher revenue, additional employees, and expanded operations are all signs that your hard work is paying off.
However, growth can also create insurance gaps. Many businesses purchase insurance when they first open their doors and rarely revisit their coverage until renewal time. The problem is that as your business changes, your insurance needs often change as well.
If your company has grown over the past year, now may be the right time to review your coverage.
1. You've Hired Additional Employees
Adding employees is often one of the first signs of business growth. More employees can mean increased workers' compensation exposure, additional payroll, and greater liability risks.
If your workforce has grown significantly since your last policy review, your current coverage may no longer accurately reflect your operations.
Business owners should regularly review:
- Workers' Compensation coverage
- Employee classifications
- Payroll estimates
- Safety procedures and training programs
2. You've Purchased New Equipment or Property
Many businesses invest in new equipment, tools, furniture, computers, or inventory as they grow. While these assets help generate revenue, they may not automatically be reflected in your insurance policy.
If your property values have increased, your existing limits may no longer be adequate.
Consider reviewing:
- Commercial Property Insurance
- Business Personal Property limits
- Equipment schedules
- Inland Marine coverage for tools and equipment
3. You've Added Vehicles to the Business
Growth often means adding company vehicles or increasing business driving activities.
Whether you purchased a new work truck, delivery van, or service vehicle, your commercial auto policy should be reviewed to ensure all vehicles and drivers are properly covered.
Business owners should also consider whether employees use personal vehicles for company business, which may create a need for Hired and Non-Owned Auto coverage.
4. You've Expanded Your Services or Operations
Many businesses evolve over time. Contractors add new trades. Restaurants add catering services. Massage therapists expand into new treatments. Service businesses take on larger projects.
Any change in operations can impact your insurance needs.
New services may create exposures that were not contemplated when your policy was originally written.
Reviewing your operations annually helps ensure your coverage remains aligned with what your business actually does today.
5. You're Signing Larger Contracts
As businesses grow, they often pursue larger clients and larger projects.
These contracts frequently require:
- Higher General Liability limits
- Additional Insured endorsements
- Primary and Non-Contributory wording
- Waiver of Subrogation endorsements
- Umbrella or Excess Liability coverage
Many business owners discover contract requirements only after winning a job. Reviewing your insurance before bidding on larger projects can help prevent delays.
Growth Can Create Coverage Gaps
The insurance policy that worked when your business generated $250,000 in revenue may not be the right fit when you're generating $1 million or more.
Growth changes your risks, your assets, your workforce, and your contractual obligations. Reviewing your coverage periodically can help identify gaps before they become costly problems.
When Should You Review Your Insurance?
Consider a coverage review if your business has experienced any of the following:
- New employees
- Increased payroll
- Additional vehicles
- New equipment or inventory
- Expanded services
- New locations
- Larger contracts or projects
Even if no major changes have occurred, an annual review can help ensure your coverage still matches your business needs.
Review Your Coverage Before Renewal
Business growth is a good problem to have, but it can create insurance gaps if your coverage doesn't keep pace with your operations.
Request a quick policy review to make sure your insurance reflects where your business is today, not where it was when you first purchased the policy.