How To Adapt Your Insurance Needs As Your Business Grows


As your business grows, so does the risk surrounding it. It is essential to have a plan or system in place to adapt to these changes. It’s important to regularly update your business’s insurance policy to ensure you’re covered from the threats it’s vulnerable to. Remember that the policies you took out when you first started your business, may not suit your growing needs anymore.

Keep in mind that insurance is not constant. It can be referred to as a variable entity. So, as your business grows, there are a few things that you need to adapt in terms of insurance coverage. To avoid costly pay outs if a claim is made, or being caught out with inadequate cover, it’s important to determine and address all the possible risks you might encounter as your business continues to grow. Each and every business will have different needs but to help you investigate which insurance policies are right for you, we’ve listed a few circumstances below.

Open for Business

It goes without saying, when you open your doors to customers, sooner or later, someone could get injured on your property. Visit enough clients at their offices, and eventually, you might break something. Work with enough contractors and vendors, and one day someone might take offense to something you’ve said. These are your basic business risks no matter what industry you work in. To address them, most business owners seek out General Liability Insurance.

 New Equipment

The amount of stock, assets, tools and equipment may increase as your business grows. It is something like moving into a new house. Initially, you will have all your basic furniture and essential business equipment with plenty of open space. However, with the passage of time, you will inevitably fill  your workplace with new furniture, tools and gadgets, etc. 

Let us give you one example. Imagine you are running a painting and decorating company. So, at first, you have the basic equipment such as brushes, rollers, and other an assortment of essential tools. When you expand your business, you will need more equipment such as  uniforms, safety ladders, face masks and safety equipment for your employees, etc. 

At this position when your business is growing, if you step back, you will come to realise that you have actually invested a significant amount of money into the physical property. So it would cost you a lot of money to replace all the elements and gear – for example, if a fire destroyed your property.

So, before you face such a situation, it is important that you invest in “Commercial Property Insurance,” which will help you protect both the building and the equipment.

 Your Employees

Now that your business is growing, you have begun employing team members to further expand your business potential. Now you need to adapt your insurance policy because you are also responsible for any accidents or injuries that may occur at the workplace. Therefore, to protect yourself from any future unwanted or unexpected claims, it would be a wise decision to carry Workers’ Compensation Insurance.

 When an employee is injured at work, you’re legally responsible for medical costs and lost wages. Workers’ Compensation covers these costs. It also gives you some legal protection from lawsuits. When your policy covers an occupational injury, an employee has less ground to sue you. So it’s a win-win for you and your workers. Their injuries are covered, your lawsuit risk is reduced.

 Plan Ahead

It’s important to plan ahead for these changing circumstances in order to be covered by the appropriate insurance. Build a relationship with an insurance broker and get information about the cost of insurance so you know what to budget for as your business grows.

If you’re still not sure about what insurance to get for your expanding company, chat to one of our friendly insurance specialists at TBI, Transport and Business Insurance. We are  an Australian-based insurance company that will take care of your changing insurance needs.