Policy Price

Based upon early June employment data, the economy appears to be experiencing growth in a number of areas (even though it is, undoubtedly, still struggling in the majority of them).  Furthermore, with smaller businesses showing the largest gains in new jobs created, this means that today is the ideal time to re-evaluate your liability insurance  policy if you own a small company. Your current insurance coverage may have been quite adequate for the number of employees, volume of on-site visitors, etc. that were part and parcel to your business during the Great Recession of 2008-10, but it may no longer be sufficient as you widen your scope in a period of expansion.

Making the decision whether or not your policy provides the desirable levels of coverage for your estimated growth calls for a little bit of guess work, but there are a few key factors that, once evaluated, give you a good view of of your firm’s projected needs. Should you anticipate seeing a rise in exposure as a result of a change to any of these elements that affect your firm, then you might want to consider broadening your coverage:

New Regulations

Due to the turbulent political and financial climate we are in, there is an always-present possibility of huge changes in legislation that impact liability insurance for small business owners. Stay up-to-date with changes in legislation that affect your organization, and find out whether or not any of them raise your liability.

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Staffing

Do you plan to grow your staffing as a result of an expansion of your business? If so, this is yet another change that would increase the amount of liability coverage you should have. Many small business proprietors give minimal thought to how changes in the size of their workforce affect their liability, but exposures linked to employees are a major factor in establishing your premium and deductible.

New Products or Services

When a rejuvenated economic environment has prompted you to begin offering new products or services, make sure you review what these additions to your portfolio involve, and be sure that they aren’t generating new liabilities beyond your existing policy. As an illustration, if you operate a small restaurant and have opted to start  providing home delivery, make certain that your general liability insurance policy contains the acceptable coverage for employees and vehicles.

Expanding Your Physical Property

Another typical adaptation that businesses make as they increase in size is relocating their operations to a larger building, or developing their existing one. While all of that added space offers more area for serving clients, holding merchandise, etc., it also adds a significant amount of liability. Make sure you take this into consideration, and change your policy appropriately.

A Few Closing Thoughts

Unfortunately, general liability insurance for small business entrepreneurs just isn’t something that can always remain fixed throughout the life of a policy. As your business changes, so too will the liabilities it will face. Through staying aware of this basic fact, however, you are able to modify your coverage to meet your evolving needs, and make certain that your venture continues to develop and prosper for years to come.

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