Keep these risks in mind as your business grows.
Most small businesses expect to grow as their product or service takes off. With that growth, however, come risks. Growth can happen in more than one way, whether the business buys new equipment, hires an employee, or offers a new service. Take a look at the common risks the business owners face as they grow in different ways.
You know that your team runs your business. They are responsible for daily operations and bringing in new business. If you are looking to onboard a whole new team or even just one more person, you will need to review your workers’ compensation insurance. With more team members, the risk of accident and injury grows, which your business should be adequately protected from. You should also consider Employment Practices Liability Insurance as your company grows. It provides legal representation and help with claims of unfair practices or improper termination of a staff member.
Offering a new service
This is a savvy growth move as expanding service offerings can help attract new clients and increase revenue from existing clients. From a risk management perspective, updating general and professional liability insurance is crucial because new services may come with new risks.
Selling a new product
When you are looking to sell new and different product, you will need to update the product liability insurance portion of your general liability insurance. This is the part of the policy that offers protection if a product injures a customer in some way.
Buying new equipment or furniture
When your business is doing well, you may want to revamp your office or install new equipment to streamline processes. If those items are valuable, business owners should verify that their business owners’ policy or commercial property insurance policy has adequate limits to cover them.