Insurance for Growing Businesses: 4 Questions to Ask Yourself
When starting a business, your initial thought going into insurance coverage is usually to not overinsure – especially when you have limited funds available. However, it’s vital to understand that insurance for growing businesses is different. As your business begins to grow, it’s important to keep in mind that the insurance you began with doesn’t always match the needs of your business at its present state. Without proper insurance management, you could be overpaying for insufficient coverage.
Insufficient coverage drastically increases the risks and costs that could have been avoided simply by reviewing your policy and being aware of growth.
Reviewing Your Policies
Regardless of whether or not you believe your business has grown enough to substantially change your insurance coverage, you should be reviewing your insurance policy regularly. It’s better to be safe than sorry. The last thing you want to happen is to have to file a claim and then realize you’re extremely undercovered.
When your business is smaller, you usually have a good grasp of your numbers and what’s flowing in and out of your business. As you grow, it’s easy to lose track of every minor thing that is happening around you. You could be missing key indicators that show it’s good to update your coverage.
Questions to ask yourself:
- Have we made any changes in coverage lately?
- Have we brought in new staff that could bring in extra liability?
- Have we experienced recent liquidity events?
- Have we inquired any new sources of potential loss?
If you answered “yes” to any of these questions, it’s time to take another look at your insurance coverage. If you’re a new small business, you’re most likely going to be answering yes to these questions for the next few years. Small businesses’ insurance needs change frequently. Checking on your insurance policy twice a year will help eliminate unnecessary expenditures.
Have a Reliable Partner
Whether your business continues to rapidly grow or starting to plateau, it’s important to review all of your policies at least once a year, eliminating over insurance and unnecessary costs. Placing all of your policies with one single carrier can actually help reduce costs while allowing you to have more clarity and control over your coverages.
At Snellings Walters, we work to provide what is best for you and your business needs. We’d love to help you reevaluate your coverage needs to help save you time and money. Get in touch with us here.