Is 2019 looking like a much more profitable year for your company? Congratulations on your success. Everyone has hopes and dreams of taking their startup or mom and pop business to a new threshold.
In the insurance world, many business owners experience that threshold when they reach
Those first few months and years required tight budgets, and that may be true regarding your budget for insurance. However, as your business grows, you become a bigger target for insurance claims. As soon as you hit that $1million in revenue, things start to shift in terms of how you’re covered. We generally see that liability insurance plans that are tied to revenue start to cap out, and your growing assets will now require heftier insurance coverage.
At Swarts Manning & Associates, our insurance design specialists work with fast-growing companies like yours, and we help customize insurance programs that are cost-effective while keeping you covered for future risks. Here are the most common areas:
1. Multiplying Revenue Lowers Insurance Premiums
The first thing we want to look at is your balance sheet. Are your revenues and losses stated strategically? Insurance premiums are expressed as a ratio, and our insurance design specialists crunch the numbers with your CFO to maximize your coverage and minimize your premiums.
2. More Employees Means More Coverage
With a growing workforce, you can expect to experience more employee-mishaps and situations that may hold your business liable. This includes discrimination, sexual harassment or workers comp claims. Also, as soon as your business grows past 50 full-time employees, ACA laws mandate that a company offer ACA-compatible coverage. To protect yourself, we recommend Employment Practices Liability Insurance (EPLI) coverage so that you can more easily deal with claims made by employees, former employees, and potential employees.
3. Better Talent Necessitates Better Benefits
As you offer your growing workforce better benefits, you may also want Employee Benefits Liability coverage to protect you from being liable for an error or omission in the administration of an employee benefit program. Our employee benefits team can help you put together a competitive employee benefits package (contact us by filling out the form below).
4. Higher Valuation equals Higher Target
As your business’ valuation increases, you also become a bigger target for criminal activity. Protect yourself from things like embezzlement, cyber attacks, and data breaches. If you are susceptible, we encourage you to consider Commercial Crime, Employee Dishonesty, or Cyber Liability coverage for your risk management program to alleviate some of that responsibility.
5. Growing Responsibilities Perpetuate Planning
While you have most likely considered, and are covered for, many of the previous situations, there are also scenarios you could have never imagined that strike your company. The people you trust most like officers, directors, and shareholders could also put your business at risk.
A Directors & Officers policy covers individuals in the business if there is mismanagement of company information. Also, you’ll want to be protected in the event of a prominent death related to the company. A Business Life insurance or Perpetuation plan is a good way for multiple founders to avoid having their share passed on to the spouse when the business partner passes away. A plan like this allows the partners to buy out the deceased partner’s shares at a pre-determined amount.
Need Coverage for your Growing Business?
In business, the only thing that is predictable is the unpredictable. Don’t settle for box programs that don’t address your specific needs. Our insurance design specialists are more than just insurance agents; they are consultants. The first discussion we have starts the process to a comprehensive risk management program for your business’ needs.
Let’s Talk – Call (833) 878-2820
Call (833) 879-2820 or leave your contact information in the form below
Swarts, Manning & Associates covers relevant topics for your business weekly. Stay tuned to hear more discussions about managing your insurance and industry-specific tips.
