Spring is a season of growth, renewal, and new opportunities. For business owners, it’s also a great time to take stock of their company’s evolution and ensure their insurance coverage keeps pace. As your business expands—whether by hiring new employees, investing in new equipment, or launching new services—your risk exposure changes. Without regular policy reviews, you could be leaving your business vulnerable to financial loss.
Let's explore key milestones that signal a need for an insurance check-up, common coverage gaps, and how to protect your business from seasonal risks.
1. Key Milestones That Warrant an Insurance Review
Your business doesn’t stay the same, so why should your insurance? Consider reviewing your policy if:
You’ve hired employees. Adding staff means new liability considerations, workers’ compensation requirements, and potential employment practices risks.
You’ve expanded to a new location. A second (or third) location may require additional property coverage or policy adjustments to account for different local regulations.
You’ve invested in new equipment or inventory. If you’ve purchased expensive machinery, technology, or stock, your current coverage limits may not be enough.
You’ve added new services or products. Any changes in your business offerings could introduce new risks that require specialized coverage.
2. Common Coverage Gaps to Watch For
Many businesses assume their current policy covers all their needs, but gaps can develop as a company evolves. Some areas to review include:
Cybersecurity insurance. If your business stores customer data or relies on digital operations, cyber liability coverage is a must in today’s tech-driven world.
Business interruption insurance. If a disaster disrupts your business operations, this coverage helps replace lost income and covers temporary relocation costs.
Professional liability insurance. Also known as errors and omissions (E&O) insurance, this is essential if you provide services or consulting.
3. Protecting Against Spring-Specific Risks
With the arrival of spring, certain seasonal risks become more prevalent. Make sure your business is prepared for:
Severe weather. Spring storms, floods, and tornadoes can cause property damage. Verify your business property insurance covers these perils.
Slip-and-fall hazards. Spring rains can create slippery entryways and parking lots, increasing the risk of liability claims.
Increased cyber threats. As tax season wraps up, cybercriminals often ramp up phishing and hacking attempts. Ensure your cyber liability policy is up to date.
As your business blossoms, your insurance should evolve with it. Conducting an annual insurance review each spring can help you identify gaps, adjust coverage as needed, and ensure your company remains protected as it grows. Not sure where to start? Contact Insurance Planning to discuss your coverage options today!