Starting and growing a business comes with excitement, momentum, and a long list of to-dos – hiring employees, bringing in customers, expanding operations, and increasing revenue. But one area that is often overlooked during periods of growth is insurance.
As your business evolves, so do your risks – and the coverage that once fit your needs may no longer fully protect your operations today.
Since 2022, liability claim costs for small businesses have increased by 18%, yet 1 in 3 small businesses in the U.S. still do not have the right coverage in place to withstand these rising costs.
Let’s review important checkpoints when it may be time to review your insurance coverage.
Are You Hiring Employees?
Adding employees is one of the biggest milestones for a growing business, but it also introduces new responsibilities and risks. Having the right coverage helps protect both your employees and your business in the event of a workplace injury.
As your staff grows, it’s important to review:
- Workers’ compensation coverage – Depending on your state, workers’ compensation insurance may be required once you hire your first employee. Read more here.
- Employment practices liability coverage – this coverage addresses workforce related issues, such as wrongful termination claims and is especially needed in industries that have high employee turnover (e.g., food and beverage, retail) or a high level of customer interactions (e.g., professional services, consulting).
- Workplace safety procedures – reviewing your procedures regularly, encouraging open communication with your employees, and establishing a culture of safety first in all daily activities can help.
Have You Added New Services or Products?
As your business grows, it often starts to look different than it did on day one. New services, products, and ways of operating can bring added opportunity—but also new areas of risk to consider.
For example:
- Adding delivery services can increase auto liability exposure, and personal vehicle coverage may not apply when driving for business purposes.
- Expanding into online sales may increase cyber-related risks such as data breaches or payment fraud, making cyber insurance worth considering.
- Purchasing new equipment may create additional property exposures that should be reflected in your insurance coverage – either updating your current property policy or possibly adding equipment specific coverage.
Has Your Business Expanded?
Growth often means more than just increased sales. It can mean opening another location or scaling operations across new markets.
As your operations expand, your insurance coverage should expand as well. What worked when your business first launched may no longer fully protect your business today.
Business expansion can lead to new exposures such as:
- More inventory or equipment – Additional inventory, tools, technology, or equipment may require higher property coverage limits to help protect against covered losses.
- Increased customer foot traffic or business activity – More customers, vendors, or daily operations can increase the risk of accidents or liability claims (e.g., slip and falls), making it important to review your liability coverage.
- New locations or expanded service areas – Operating in additional locations or states can create new insurance considerations, including different coverage requirements.
- Larger clients, contracts, or projects – Bigger opportunities often come with increased liability exposures. For example, a contractor taking on larger commercial projects may be required to carry higher liability limits or secure a surety bond before work can begin.
Final Thoughts: Growth Should Come with Protection
Growth is an exciting stage for any business, but it’s also a good time to pause and evaluate whether your insurance coverage still fits your operations today.
While insurance helps meet requirements, it also helps protect the business you’ve worked hard to build. Reviewing your policies annually or when certain milestones are achieved can help identify gaps and address new risks – giving you confidence as your business continues to grow.