As Your Business Grows, Are You Sure You Have Enough Insurance in Place?
When you first started your small business, you may have been able to handle operations by yourself with relatively small overheads and somewhat less to worry about. However, when you grow to a certain size and need to take on staff to help you operate, your obligations and risks will begin to increase exponentially. In this case, you need to ensure that you have the right insurance in place so you don't encounter a potentially significant problem that could completely derail your plans. So, what are some of the "extra" insurance products you should consider going forward?
Expanding Your Basic Coverage
Most business owners understand that they need premises and equipment coverage to protect their tangible assets and will probably need public liability insurance as well. After all, if somebody were to injure themselves as they interacted with your business, you would need to cover any claim.
Employment Practices Liability
But what about employment practices liability insurance? When you grow a workforce, you need to ensure that you don't face a claim for workplace or sexual harassment, discrimination or even unfair dismissal. This type of coverage would reduce that risk.
Or, what about business interruption insurance? In the old days, you may have been able to hold out if your business was forcibly closed for some unforeseen reason. When your overheads are relatively low, and those other commitments are in check, you may often fall back on some savings. However, this is not so easy with a much bigger operation. If your company was forced to shut its doors for some time, would you be able to meet ongoing costs, or would this prove to be terminal?
Professional indemnity insurance is another form of special coverage that may be appropriate in your case. For example, if you give advice to customers either formally or informally and they act on your guidance with some negative consequences, you may be liable. They may turn to you for compensation, and you will need to turn to professional indemnity insurance for help.
Putting a Plan in Place
As you can see, there are additional challenges when you expand your operation, and it only makes sense to protect yourself as much as possible. Talk with your commercial insurance broker today, and they will assess your current situation. They may also advise on the types of insurance to give you the protection you need.