When a company reaches a certain point, the process of remaining profitable can be somewhat challenging. In order to grow a small business, multiple investments must be made; however, since some investments are risky, an entrepreneur needs enough insurance for financial reasons. According to industry experts, there are specific times when a company will have to buy extra coverage from an agency.
New Employees
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In many states, a business must have worker’s compensation insurance in case employees injure themselves. This policy covers lost wages, medical costs, and other expenses. If you don’t buy additional insurance after hiring new employees, your worker’s compensation cost will increase.
Bigger Location
After you move into a commercial store or build a new facility in another location, you’ll have to adjust your property insurance policy. A typical plan covers:
Water damage
Fire damage
Hurricane damage
If you decide to close the first location in order to open a new store, you’ll still need to buy more insurance. The coverage requirements will change if you’re moving into a larger facility in a different city.
Strategic Investments
Once a company has successfully scaled, more expensive equipment will be needed to boost efficiency and productivity throughout the day. In the business world, accidents happen without notice, so you must ensure that your current insurance policy will cover all of your new production, manufacturing, and office equipment. If you’re not covered, contact a local agent in your area; during the discussion, the rep will determine whether or not more property coverage is required as well.
The Business is Now Mobile
Any business that uses fleet vehicles will need commercial auto insurance. This means that if you’re going to boost sales by developing a delivery service, you’ll need more insurance coverage.
Overall, there are many situations when a business owner must seek more insurance. If you’d like to take an alternative route that provides more financial benefits, considering working with insurers in the captive insurance industry. This kind of insurance is unique because the insurers don’t network with agents in a commercial marketplace.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.
