Growth is a good thing. More clients. More revenue. More employees. But growth also increases exposure. If your business has expanded in the past year, your insurance program should expand with it.
More Employees, More Employment Risk
Hiring is often the first sign of growth. It is also one of the biggest liability shifts. With each new employee, your exposure to claims increases, including:
- Wrongful termination
- Discrimination
- Harassment
- Wage and hour disputes
- Retaliation claims
Employment Practices Liability Insurance, or EPLI, is no longer optional for most growing businesses. Claims are rising. Carriers are settling more often. Defense costs alone can be significant.
If you have added staff and have not reviewed your EPLI limits, now is the time.
Expanded Services Increase Professional Risk
Have you:
- Added new services or procedures?
- Invested in new equipment?
- Expanded into new markets?
Professional liability coverage must reflect what you actually do today, not what you did three years ago.
New revenue streams often create new exposures. If your carrier does not understand those changes, coverage gaps can form.
Higher Revenue Means Higher Targets
As your business grows, so does its perceived value. Plaintiffs and their attorneys look at revenue and assets when evaluating claims. Higher income and stronger balance sheets can increase settlement demands. This is where umbrella and excess liability policies become critical. A primary general liability limit may not be sufficient in today’s litigation environment.
Property and Business Income Limits Must Keep Up
Growth often brings:
- Equipment purchases
- Technology upgrades
- Leasehold improvements
- Larger inventory levels
If property limits have not been updated, you may not have enough coverage to rebuild or replace after a loss.
Business income coverage should also reflect current revenue, not outdated projections. Underestimating this number can create serious cash flow problems after a claim.
Growth Requires a Coverage Review
Insurance should support your success, not slow it down. If your business has added employees, expanded services, increased revenue, or invested in new assets, schedule a policy review.
At Professional Insurance Programs, we work with Wisconsin professionals and business owners to align coverage with real world growth.
Call 800-637-4676 or visit www.insuranceformembers.com to schedule your business insurance review.
Growth creates opportunity. Make sure it does not create uncovered risk.