4. Hiring More Employees
There’s a trend here – as your business grows, you can afford to hire more employees. With more employees, comes more risk. Your business insurance most likely covers full-time employees. However, the limit total usually includes all employees rather than each individual (e.g., a $2M limit across all five employees). Sub-contractors are generally not covered by your policy. However, your business can still be named in a lawsuit if they are found liable.
For example, if you are a spa owner renting a room to a massage therapist three days a week and they are sued for malpractice, as their employer, you and your business could be named in the lawsuit. To ensure everyone is adequately covered, your sub-contractors should have their own liability insurance.
5. Purchasing New Equipment
If your business has grown, chances are you’ve purchased more equipment. It this equipment breaks down, your coverage may cover the cost to replace or repair. However, contents insurance and equipment breakdown insurance typically have a specific limit of equipment covered (e.g., $30,000), which is why you need to let your broker know when you grow, so you have adequate coverage.
How Much Does It Cost To Update My Policy?
The cost of business insurance ranges depending on several factors, including the type of industry you work in, your annual and projected revenue, and the size of your business. Changes to any of these will affect the cost of your premium. On average, as a small business owner, you can expect to spend $650 on a $1M general liability insurance policy.
As your business grows, so does your to-do list. Make sure updating your business insurance is at the top. Ready to see what business insurance looks like for your growing business? Start an online application to get started today.