Growth is what most business owners want. Maybe you started with two employees and now have eight. You added three trucks, bought $50,000 worth of equipment, moved into a larger building, or started taking bigger jobs. Those are all signs that things are going well. The problem is that your insurance may still look a lot like it did when your business was half its current size.
Insurance companies base coverage and pricing partly on what your business actually does. Payroll, sales, vehicles, employees, equipment, locations, and the type of work you perform can all matter. If those things change significantly and your insurance doesn’t change with them, you can create gaps in coverage or receive a large additional bill when the insurance company audits the policy.
Contractors should pay particular attention when they begin doing different types of work. An HVAC contractor doing residential service and change-outs may have a different risk than one that starts working on large commercial projects or new construction. The same goes for a property owner who buys another building or a business that starts offering a completely new service. Don’t assume your existing insurance automatically adjusts every time the business changes.
You don’t need to call us every time you buy a new ladder. But when something significant changes, let us know. New employees, vehicles, locations, major equipment purchases, large increases in payroll or sales, and new types of work are all worth a conversation. As your business grows, your insurance should grow with it.
Stay Tuned For Other Great Reads In This Month’s Newsletter
- The $10,000 Insurance Audit Surprise: How Contractors Can Avoid It!
- Is Your Commercial Building Insured for What It Would Cost to Rebuild Today?
Connect with us Oklahoma Insurance Group