Running a business is a series of adjustments. Whether it’s refining a product so it’s more conducive to what customers are looking for, or something as simple as buying more product to account for higher demand, business ownership is a medium that’s never static. In short, it’s an arena that consistently needs reviewing in order to be successful.
This is very similar to how business insurance works. Oftentimes, when entrepreneurs choose a policy, they choose the one they want early and leave it alone from there on out. However, as with life, elements of it are changing all the time, from a company’s structure to how many employees it has. And when a business owners insurance policy doesn’t adjust to those alterations, gaps in coverage can result.
Sometimes, it’s the “elements” surrounding a business that are changing. Take the weather as an example. Researchers say that due to the effects of climate change, natural disasters today are not only more common, but also more intense. Business insurance that doesn’t have the appropriate amount or type of coverage to address severe weather when Mother Nature strikes can lead to severe hardship for a company’s bottom line and its ability to recover after a loss. According to the Federal Emergency Management Agency and Insurance Information Institute, an estimated 40% of businesses are unable to reopen after experiencing a disaster that forced their doors to close due to damage.
Coverage for employees
Reviewing your insurance is also important because you may want a type of coverage now that wasn’t necessary when the company first began. For instance, as of 2013 – the latest year for which data is available – there were 23 million businesses in the U.S. without paid employees, according to data from the U.S. Census Bureau. But when a company grows in size, staff often has to be hired to accommodate demand. Modifying a business insurance plan – such as by adding workers compensation insurance – should be prioritized as a result.
For more information on business insurance, the III has a web video that delves into some of the particulars. Additionally, the U.S. Small Business Administration is hosting a free webinar on what business owners can do to prepare for winter weather, a key component of a company’s sustainability.
For all other questions related to coverage, contact RC4 Insurance Agency, LLC today.
Article From Selective Insurance
