Finding business insurance that fits

Securing Tailored Business Insurance

Contemplating insurance is not a favorite pastime for most business owners. Many initially acquire coverage either at the inception of their enterprise or due to contractual obligations, subsequently renewing it annually as a recognized necessity. However, as businesses evolve, so should their insurance coverage. Two pivotal factors that can affect the adequacy of current coverage are changes within the business itself or shifts in the risks encountered.

Adapting to Business Changes:

Reflect on your business’s current state compared to its initial stages. Noticeable transformations may include the hiring of employees, relocation to new premises, or expansions in product or service offerings. Additionally, revenue and payroll may have substantially increased since the business’s inception.

Employees: The inclusion of employees mandates the need for workers’ compensation insurance, prevalent in nearly every state. This coverage addresses medical costs and lost wages for workers injured or falling ill on the job.

New Premises: Transitioning from a home-based setup to a dedicated space may necessitate a shift from general liability coverage to a business owner’s policy (BOP). A BOP extends coverage to your business property and third-party claims for property damage or bodily injury.

New Products or Services: Offering advice to clients may warrant professional liability coverage, also known as errors and omissions (E&O) insurance.

Changes in Revenue or Payroll: Business growth prompts the need for adjustments in insurance coverage limits to ensure comprehensive protection aligning with the expanded scale of operations.

Addressing Evolving Risks:

Small businesses constantly face evolving risks, demanding insurance coverage that remains aligned with these changes. A prime example is the escalating threat of cyber risks, where cybercriminals employ increasingly sophisticated tactics. In response, cyber risk insurance becomes imperative.

Cyber Security Insurance: Protecting businesses against the financial ramifications of data breaches or cyber incidents, cyber insurance also proactively prevents potential attacks. This can involve training resources and software solutions to enhance data security. In the event of an attack, cyber insurance may provide access to crisis management professionals to mitigate the impact.

The 2023 Hiscox Underinsurance Report reveals that 75% of surveyed business owners with one to 50 employees are underinsured. Periodically reviewing coverage, at least biennially or more frequently with significant changes in revenue or payroll, is crucial to ensuring adequate protection against potential claims or lawsuits.

In essence, having tailored and up-to-date insurance is pivotal in safeguarding the business you’ve painstakingly built.