How to Tell if Your Small Business Needs a New Insurance

When running a small business, having the right insurance is essential for protecting your business and its assets. Insurance can protect your business from financial losses in a lawsuit, disaster, or unexpected event. Aside from that, having business insurance can help protect your business’s assets and give you peace of mind knowing that you are covered in a major loss.

But how do you know when to get a new insurance policy? This article will discuss how to tell if your small business needs a new insurance policy.

Using up More Office Space

As a small business owner, you have likely experienced growth and expansion in your business’s life cycle. Growth can be exciting and rewarding through increased demand, new customers, or innovative products and services. However, it can also be devastating, especially if you’re unprepared. You may need to rent more office space, buy more equipment, or hire additional employees.

If this is the problem, you may need a new business insurance policy. A new insurance policy will include a set of coverages tailored to your current business needs. This could include property insurance to cover the value of your office space, liability insurance to protect your company from claims and lawsuits, and commercial auto insurance for any vehicles you may use for business purposes.

Growing Workforce

Hiring employees for your small business is one way to help you grow and expand. As your workforce grows, consider additional insurance policies that provide coverage for your employees. This includes:

• workers’ compensation insurance to provide medical care and financial assistance to employees who are injured on the job
• disability insurance to provide income replacement for employees who cannot work due to a disability; and
• unemployment insurance to provide financial assistance to employees who are laid off. 

In addition, you may need to invest in an employee benefits package that includes health insurance, retirement plans, and other benefits. This will help attract and retain the best talent and demonstrate to your employees that you value their contributions. 

Revenue Growth

You’ll constantly see revenue growth when your hard work with your small business has paid off. This money comes in from sales, service fees, and other sources. You can use that revenue to reinvest in your business and expand your operations.

In this case, having new business insurance can help protect your growing business from potential losses. It can also give you peace of mind, knowing that your business is protected in case of a lawsuit or other unexpected expenses.

New Legal Entity Status

Let’s say you’re now switching from being a self-employed entrepreneur to forming a legal entity such as an LLC, partnership, or corporation. With this new business entity status, you’ll need to adjust your insurance policy accordingly. You’ll need to ensure your business is adequately covered in legal disputes, liabilities, or other risks.

Final Thoughts

Always assess your small business’s risks and review your current insurance coverage to determine if it is sufficient to protect your business and its assets. If you discover that you need additional coverage, research the different types of insurance available, compare policies and pricing from multiple insurance companies, and select the policy that best meets the needs of your business. This way, you can rest assured that your business is adequately insured in unforeseen circumstances.

Reliant Insurance provides an extensive range of business insurance policies in Sherwood Park to help small companies protect their business and assets. Our experienced team of insurance professionals can help you assess your insurance needs and develop a tailored policy that meets your specific requirements. Consult with us today!