It is an exciting time to be a business owner. As a contractor, you may notice your business growing. You have new clients and projects. Yet, all of this good comes with increased risks.
As a company, it is important to reflect on the amount of commercial coverage you have. Do you have enough? Is your company experiencing so much growth you need to expand? How do you compensation? Do not overlook your general liability insurance needs here.
Why Do General Liability Insurance Needs Grow?
As a company expands, it takes on new risks. This may mean:
- New equipment
- New work sites
- New employees
- Unproven methods or techniques
- New locations
All of this comes with increased risk. For example, your new employees may not have the same level of training as existing employees. They are more prone to making mistakes. This mistakes can carry on to the customer or client. Your new equipment may do more or be more productive, but it may have more risk in its operation. As a result of this, your needs for a higher general liability insurance policy grow.
How to Estimate Your Coverage
Work closely with your business insurance agent here. He or she will discuss key factors about your business to determine risks. Some of those factors include the following.
- Are you entering new types of work or sectors? If so, this may mean new risks. Your agent can tell you more about those industry-related risks.
- Are you doing more business? If so, this added revenue means more chance of an incident happening. Your agent will pinpoint your coverage based, in part, on your revenue.
- What safety protocols are necessary? What steps are available to reduce risks? If you have programs in place, this can minimize overall costs.
- What type of liability claims do companies like your own make? A regional look at claims for contractors like you can shed light on this.
- Where are you operating? Location plays a role in the amount and time if risk present.
Update your general liability insurance on a routine basis. Do so at least one time per year. Do the same with your overall business insurance coverage. This ensures you are paying for the right amount of protection. It also helps you pinpoint potential risks for your business. This can help you to address them, reduce them, and reduce your costs, contact us today at 708.423.2350
Also Read: 7 Types of Construction Insurance Your Company Should Consider