Thanks to Facebook, it’s easy to chart your business’s growth from inception to five minutes ago: a quick glance at your Timeline or admin panel shows you who’s talking about you, what they’re saying, how many people you’re reaching, and more. (For more about how Facebook could affect your risk exposure, check out the post "Could Your Business Be Sued over Social Media?")
But your social media metrics aren’t just a useful tool for evaluating the success of your marketing campaigns. They can also serve as important supporting evidence about your business insurance needs.
When Do I Need New Business Insurance?
Too many businesses think about insurance only once a year, when it’s time to renew their policy. If you’re growing, a single annual insurance check-in may not be enough. That’s because your coverage needs change as your business changes and grows.
As a general rule of thumb, any event that would qualify as a “Life Event” on Facebook could affect your liability insurance needs, including…
- Hiring a new employee. Expanding your workforce – especially if you’re hiring your first employee – will likely change your insurance needs. For starters, you’ll probably need to start carrying Workers’ Compensation Insurance, which most states mandate for any company that has employees.
- Offering a new product or service. Depending on what you sell, expanding your line could require you to carry additional insurance. If you start offering consultation or advising services, for example, you may require Errors & Omissions coverage, which protects you from the costs of lawsuits alleging that your advice led to financial losses.
- Moving to a new office. Your Property Insurance needs depend largely on the place you hope to insure and its size, location, age, and amenities. A new office space (especially if it’s your first non-home office) will likely come with new coverage requirements.
- Getting a new partner. Changing your leadership structure might change your insurance needs, especially if you reclassify your business as part of the shift.
- Increasing your revenue. Naturally, growth is great. But remember that the more you have, the more you have to protect. As you grow, you may need to update your General Liability Insurance. If you include a Business Interruption policy as part of your General Liability coverage, be sure to document your revenue for long enough to demonstrate your growth so you receive adequate payments if and when you need them.
- Getting new equipment. Your Property Insurance protects not only your business premises but also the gear and equipment stored on those premises. If you update your IT system or invest in top-quality furniture, you’ll want to update your policy as well to reflect those changes. If you don’t, you won’t be able to receive benefits in the event that your new gear is stolen, lost, or damaged.