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Eighty-three percent of small business owners plan to grow their business this year, in response to an expected financial boost from the tax plan passed in late 2017, according to a recent Insureon-Manta poll. If you plan to follow suit, you might:

  • Hire employees.
  • Offer new services.
  • Expand an existing location or opening a new one.
  • Update an automotive fleet.

As your business expands, your insurance needs change, too. When you make the changes above, double check your small business insurance to stay adequately protected.

When you hire employees, update your workers’ comp

If you hire employees, you may be required to purchase workers’ compensation insurance, depending on the state where your business is located. Each state has its own workers’ comp regulations, but most require you to provide this coverage as soon as you hire your first employee.

If you add to existing staff, your workers’ comp policy will simply need an update to account for the new employee. Your insurance agent can make those adjustments for you and ensure your business complies with state laws.

When you offer new services, check your professional liability policy

When you offer new services, give your agent a call to ensure your professional liability insurance covers the risk. These policies are written to insure you against accusations of failing to meet professional standards of care. If you start offering services beyond your primary professional scope, your policy may need to be updated to reflect that.

When you change locations, adjust your commercial property and general liability coverage

Entrepreneurs that renovate their existing space or move to a new location should update their commercial property insurance. This policy covers the building and its contents, including furniture, computers, and business equipment.

Renovations impact the value of the property, and the property insurance limits may need to be increased to adequately protect the refinished structure or updated furnishings.

Because property insurance is tied to a physical location, when you move to a new location, you may need to renew your policy altogether to reflect your new address and the replacement value of the nw structure and its furnishings.

General liability insurance is also tied to a physical location because it offers protection for visitor injuries on your property. If you move to a location with increased foot traffic, your exposure to third-party injuries on your premises also increases. You may need to increase your general liability protection to address this risk.

When you update the automotive fleet, check your commercial auto insurance

If you purchase a new commercial vehicle, you need commercial auto insurance to protect it. This policy can cover your liability for auto accidents and help pay for vehicle repairs related to weather, theft, and vandalism damage.

No matter the growth your business takes, make sure it’s properly protected and prepared for what the future brings.

Rebecca Hosley is a writer for Insureon, a leading provider of online small business insurance. She is based in Chicago and writes frequently about small business insurance and tech startups.

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