Running a successful and growing business can be one of the toughest, but most rewarding parts of your career. At Carbon, we’ve experienced tremendous growth since we established in 2014, going from one office location to four across multiple states. We’ve experienced exciting times as well as challenging situations, and had to adapt our business processes along the way. One of the challenges business owners face when growing is knowing what to do with their business insurance. Business insurance can be complex at times, particularly if it is not understood or communicated effectively.
If your business is growing, it’s likely to be changing along the way. Whether that be changes in products, staff, structure or activity, it is important that your business insurance reflects this. We’ve highlighted a couple of things you should consider when insuring your growing business.
Workers’ Compensation is compulsory for all businesses that employ staff. A growing business in most cases will have a growing number of staff to support it, therefore it is important that your workers compensation insurance reflects the number of workers, both employees and contractors, along with estimated wages that will be paid during the 12 month period. One good thing with workers’ compensation is that the initial policy is based on an estimate of staff numbers and wages, with the ability to adjust this at the end of the policy period.
Business Insurance – Stock & Contents Levels
A growing business may be required to increase their stock or product levels or to purchase new equipment to meet demand. Therefore it would be prudent to review your insurance to ensure that you have an adequate level of cover to protect your assets.
One of the most important things to consider with a growing business is to ensure that your insurance policy is covering the correct type of business. Businesses are frequently having to diversify themselves to stay relevant in the market. A diversifying business at times will change the nature of its business activities. Examples of this are as follows.
• A plumber might expand his business activity to also include gas services
• A domestic electrician may decide to expand in to commercial or industrial work
• An accounting firm may expand into financial planning or insurance broking
The above examples are not uncommon at all, and we ourselves have experienced this. Initially launching as an accounting and bookkeeping business, Carbon soon expanded to offer services in cloud integration, insurance and finance. It is important that your insurance policy covers all business activities to ensure that you are adequately covered. Having an insurance broker that is in regular contact, not just at renewal time, can be of great assistance with this.
It’s always a good idea to get a second opinion on your insurance policy, to ensure you’re adequately covered. The team at Carbon Insurance Brokers are more than happy to have a complimentary chat about your business insurance requirements. Contact us today on (08) 9446 8588.