How Your Insurance Needs Change as the Size of Your Business Grows
When starting a business, you always have the goal to continue growing in mind. The last thing on your mind would be the types of insurance coverages you would need to have your business running at full efficiency. But how do you know what insurance to get for your business size? What happens when your company succeeds and sees growth? Not to worry, we have compiled a bit of information on what to do when it comes to insurance coverages for your growing business below. The types and amount of insurance that you need for your small business are based on several factors. First things first, you need to ask yourself: What type of business are you in? Where is it located? Do you have employees?
Small Sized Businesses
How can you classify your business as a small business? Ask yourself these two questions: Do you know all your employees by name? Does your business make less than a few million dollars a year? If you were able to answer yes to both of these questions, it’s safe to say you are operating a small business. If you prefer to see numbers to decide the business size, many insurers consider businesses with 50 or fewer people a small business. Now onto insurance, you need to have when you are a small business. A business owner’s policy, typically referred to as a BOP, is available only for businesses with fewer than 100 employees and revenues of up to about $5 million or less. You have the option to purchase customized insurance to cover specific aspects of your business, but obtaining a BOP is a pretty standard business insurance policy that all small businesses should have in their coverages.
Policies You May Need:
- General Liability
- Professional Liability
- Worker’s Compensation
- Cyber Liability
- Commercial Auto
- Employment Practices Liability
- Directors & Officers
- Business Owner’s Package
Medium Sized Businesses
Typically, if you have seen a growth in your business that has resulted in your company having between 50 to 1,000 employees and annual revenue between $10 million and $1 billion, you’ve moved into the medium-sized business category. Insurers usually have special policies set aside for businesses within this category that may combine property and liability coverages. If your business owns expensive equipment or business locations in more than one state, you can seek special customized policies.
Policies You May Need:
- General Liability
- Professional Liability
- Worker’s Compensation
- Cyber Liability
- Commercial Auto
- Employment Practices Liability
- Directors & Officers
- Business Owner’s Package
- Commercial Property
- Commercial Liability
Large Businesses
If your business has at least 500 employees, we can safely categorize your business as a large business. These forms of businesses usually consist of multi-million-dollar risks and commercial insurance that is customized to meet a company’s specific needs. Larger companies usually will have dedicated employees who maintain and practice risk management for your company.
Policies You May Need:
- General Liability
- Professional Liability
- Worker’s Compensation
- Cyber Liability
- Commercial Auto
- Employment Practices Liability
- Directors & Officers
- Business Owner’s Package
- Commercial Property
- Commercial Liability
- Property Solutions
- Casualty Solutions
It is important to keep in mind that these insurance policies may not all apply to your specific business. Keep in mind that you may require special forms of coverage depending on your business. For more information on what types of insurance your business needs, reach out to your local insurance agent today.