Insurance for Businesses in The Growth Stage
As your business grows, your risks can change so you must reevaluate your insurance needs. While you may have needed the following insurance policies before growing, they are important to think about in the growth stage of your business.
Commercial Package – As you are already aware, a BOP is made for smaller businesses. As you grow, it may not be enough coverage to meet your needs any longer. A Commercial Package policy is available for these situations. Like a BOP, it has both Commercial Property and General Liability but can be more customized to your needs. It is more piecemeal than a BOP, which is always standard. A Commercial Package insurance policy is a great option for a unique business that doesn’t fit the typical mold.
Workers Compensation – If you have employees now, you should have Workers Compensation insurance. Not only is it probably a requirement either from the state or a contract, but it is just part of being a decent business owner. If one of your employees is injured or becomes ill due to a work-related incident, you would want them to be able to get back to work quickly and still support themselves, right? Workers Compensation will pay for their lost wages and medical expenses.
Cyber Liability – The ever-growing industry of technology is great and probably helps your business, but the reality is that there is a huge risk as well. If you do business on the internet, store customer information, or take payments then there is a risk of a cyber-attack or data breach, so you must have a Cyber Liability policy to cover the ridiculously high expenses associated with such an event.
EPLI – Employees help to grow your business and hopefully bring in more money, but they can present a risk to your business as well. EPLI, or Employment Practices Liability insurance, is available to protect your business against claims of sexual harassment, wage discrimination, wrongful termination, and discrimination among other things. Unfortunately, these allegations can be very damaging even if they are untrue, so protect your business by having this critical insurance coverage.
D&O – Directors and Officers Liability insurance is crucial for any business that has a board of directors. While you may not start with one, you will likely have one in the growth stage or the future. If this is the case, you will want to protect their assets in case of allegations of mismanagement of funds or other unforeseen incidents. Often, you can also purchase Directors and Officers Liability and Employment Practices Liability as a bundle as well. Be sure to pay attention to any retention that may be on the policy, which is like a deductible.
Umbrella – As you grow, your liability does too. A General Liability insurance policy usually has limits of $1,000,000 per occurrence and $2,000,000 per aggregate. With lawsuits growing in popularity and numbers, these limits just may not be enough. A Commercial Umbrella policy is recommended for all businesses. It is a separate limit of liability that will sit on top of your other liability policies, even auto and employers’. Another great thing about an Umbrella Liability policy is that it may cover gaps that may be hiding in the underlying policies. While all exclusions are listed in each policy, you may overlook one or not realize it even applies to your business. An Umbrella is just a great way to add an extra layer of protection to your business.