It’s been a busy summer here at insureon. On June first, we moved into a new office building (pictured) to accommodate our growing staff, and since the move, we’ve welcomed several new team members to the fold and launched exciting new projects in every department. So this seems like a good a time as any to spend some time addressing the risk management side of moving on up.
Here’s an overview of key risk management issues to consider whenever your business grows, moves, or expands its offerings.
Risk Management for Business Changes
Any time you change the way your business runs, you also change the risks you’re exposed to. If your business is experiencing the same kind of shifts as insureon (moving premises, introducing new products or services, bringing on new staff members, etc.), you’ll need to take the following risk management procedures into consideration.
- Updating your General Liability Insurance. If you’ve been enjoying coverage under a Business Owner’s Policy (BOP) and move to larger premises, you may outgrow the coverage a BOP can offer. That’s because the BOP is specifically designed for low-risk businesses. One of the factors that insurance carriers consider when determining risk level is the size of your premises, so larger office space could mean larger risk exposures.
- Updating your Workers’ Compensation Insurance. Bringing on new staff members (or hiring your first assistant or part-time employee) means you have new responsibilities to their safety. Workers’ Comp laws are passed at the state level, so they’re different everywhere in the country. Check with your insurance agent to determine whether you need coverage for your new staff and how much coverage is adequate to protect your business assets.
- Updating your Errors & Omissions Insurance. When you start branching out into new products and services, you expand the opportunity to cause your clients financial damage or personal injury because of the work you do or the goods and services you sell. If you don’t yet have an E&O policy in place, now is a good time to get one, even if you haven’t grown much recently. Why? Because most E and O policies work on a claims-made basis, meaning they only pay benefits if they’re in force both at the time an incident occurs and at the time a third party brings a lawsuit related to that incident.
- Updating your commercial Property Insurance. This is probably the most obvious risk management requirement for businesses making major changes. Any time you purchase a new piece of major equipment or move to a new location, your exposure to property damage increases, meaning that you’ve got to update your coverage to keep pace.
Not sure how to manage the growth your business is experiencing? Take a few minutes to talk with an insureon agent to determine how to protect your business for now and in the future.