When you first buy business insurance, it’s often enough to meet your basic legal requirements or satisfy a landlord or client. But as your company grows, your insurance coverage should grow too. Knowing when to update coverage is an essential part of smart risk management — and could mean the difference between a minor setback and a devastating loss.
Below, we’ll cover key signs it’s time to increase business insurance, how to do a coverage review, and provide tips to help you protect your company.
Why Updating Your Business Insurance Matters
The coverage you started with may have been perfect in your early days. But as your company grows, so do your risks — more employees, new locations, higher revenue, or expanded services all change your coverage needs. If your insurance hasn’t kept pace with your growth, you could be underinsured and stuck paying out-of-pocket for unexpected losses.
Signs You Should Increase Your Coverage
Not sure when to update your policy? Here are some clear signals that your commercial insurance needs have changed:
1️⃣ You’re Expanding Operations
If you’re hiring more staff, opening new offices, or adding vehicles, you should review your policy to make sure you’re covered for additional liability and property risks.
2️⃣ Revenue Is Growing
An increase in revenue often means more exposure to lawsuits or larger potential losses. An insurance review helps ensure your limits match your current income and assets.
3️⃣ You’re Offering New Products or Services
New offerings can bring new risks. Make sure your policy update covers any liabilities tied to new products, professional services, or specialized equipment.
4️⃣ You Work from Home or Hybrid
Even home-based businesses need the right protection. A standard homeowners policy won’t cover business equipment or client-related claims. Get home-based business insurance or update your current policy to cover your work-from-home setup.
How to Increase Business Insurance
So, how do you increase business insurance effectively? Start with a full policy review at least once a year or whenever your company changes significantly.
- Compare insurance quotes from top providers like Progressive, GEICO, Allstate, The Hartford, Embroker, and others.
- Talk to your agent about your current risks and future plans.
- Ask about bundling policies for better insurance rates and savings.
- Look into specialty options like home-based coverage or commercial insurance needs for specific industries.
Tips for Keeping Business Insurance Affordable
If you’re worried about the price of coverage, here are some tips to help keep costs manageable:
- Shop around or use a cost calculator to find cheap business insurance without sacrificing necessary protection.
- Raise your deductible if you can afford a higher out-of-pocket payment.
- Combine policies (property, liability, auto) to lower your rates.
- Regularly check for discounts with providers that offer the best insurance for your industry.
Final Thoughts
The best time to increase your business insurance is before you need it. Build an annual insurance review into your risk management plan to keep coverage aligned with your growth — and safeguard the success you’ve worked so hard to achieve!
