Choosing Insurance Coverage for Your Business

Quick Summary

Change is a fact of life for just about every business. If yours is experiencing growth, this probably means you’ve taken on new and increased risks, which it may not be adequately protected against. On the other hand, if you’ve seen a slowdown in revenues or have pared down overhead, you may have reduced your risk exposures. You may be carrying more coverage, and paying more in premiums, than your business truly needs.

If your current insurance coverages don’t meet the changing needs of your business, it’s time to make some critical adjustments. Most insurance professionals recommend that you review your business’s existing policies and exposures at least once a year.

Choosing Insurance Coverage for Your Business

In This Section

Address New Exposures

Determine Changes in Property Exposures

Adjusting Your Business Income Insurance Coverage

Special Needs of Growing Businesses

Address New Exposures

Is your business expanding into a new product or service area? Have you taken on new contracts? Are you putting more of your sales or marketing functions online, including social media? Typically, with new initiatives and business investments come new and/or increased challenges. You need to make sure your business insurance is up to the job.

Determine Changes in Property Exposures

Your property exposures should be updated frequently. This includes taking into account:

Adjusting Your Business Income Insurance Coverage

If your Business Owner’s Policy (BOP) includes business income coverage, it’s important to have your policy reflect your true revenues and risks. Otherwise, you’re either under-insured – or paying more than you need.

Special Needs of Growing Businesses

Growing businesses don’t just get “bigger,” they become more complex. As your business evolves, you should work with your insurance professional to create a comprehensive risk management strategy. In addition to insurance planning, this should include loss control efforts – such as safety training and equipment, strong employee programs, business contingency planning, and IT safeguards.