There are many exciting things about watching your business grow. It’s great to see customers satisfied with your products and services, and it is encouraging to hear positive feedback from both your clients and your employees. However, as your business grows, you also have more to lose.
Each person you come into contact with is forming an impression about your business. You are working with contractors, suppliers, and many other professional services as you seek to expand. You might also be expanding into more than one location.
As your business requires more employees, more equipment, and more payments, an unexpected circumstance could quickly increase your bills or decrease your revenue. You don’t want to get caught up in a cash flow disaster, and you can prevent this by having the right type and amount of business insurance in place.
The coverage you signed up for when you were first starting your small businesses might have been an excellent choice at the time, but insuring a business is not a one-time decision. Instead, you need to regularly examine your business liability insurance to ensure that you have the protection you need for your increasing assets.
Each company’s needs are different for small, medium and large business insurance. The need for an annual review is one need shared by all. The end of each financial year is a great time to do this since you can account for changes and growth over the last 12 months of your business.
As you are making your business insurance plans for the upcoming year, consider the following categories alongside business vehicle insurance and other more conventional business insurance options.
No single person can handle all of the operational tasks for a business, so you will be promoting employees and setting up a chain of command as your business grows.
As an employee assumes more responsibility, she also assumes more risk. That is true of executive directors, officers, high-level managers, and numerous other positions.
It’s exciting to see employees grow and mature into managers. However, your officers do not want to put their finances at risk because of their increased responsibility levels. That’s where directors’ insurance comes in. This type of insurance allows you to protect officers and have coverage for their legal costs if their job responsibilities result in legal action being taken against them from outside your business.
Business Interruption Insurance
In the business world, circumstances can change drastically, even overnight. Whether you are dealing with a scandal inside your business, a worldwide pandemic, or another situation, you might have to temporarily close your business.
When you work with a business insurance broker to purchase business interruption insurance, you will be covered when the unexpected occurs. After all, the costs of running your business, such as insurance premiums and rent payments, do not stop because your profits stop rolling in.
Cyber Security Insurance
Regardless of the type or size of the business, all companies now rely on the Internet to keep moving. Because of that, a cybersecurity breach or intentional hacking event can cause catastrophic damage.
Customers will not feel secure utilizing your business when their data is compromised, resulting in reduced sales. You can also experience loss of funds, loss of privacy, and many other negative repercussions from a cyber-attack. Meanwhile, governments around the world (including New Zealand) are increasing financial penalties for privacy breaches.
Cyber insurance is a modern form of business insurance that has become increasingly vital. You might not be able to stop every cyber threat from the outside, but you can ensure that your business will be covered if you are targeted in this type of crime.
For small businesses in particular, ransomware attacks and data theft are threats that you may not have the resources to prevent or deal with, so insuring against them can be a good option.
A business insurance review does not mean blindly adding more insurance and premiums. It’s about ensuring you have the right level of insurance to cover the risks that are important for your business.
Contact us for a quick chat and we can advise on how we can help.