Many small business owners prefer to focus their energy on the external aspects of their business, rather than be caught up in the day-to-day minutiae. After-all, isn't the saying "Work "on" your business, not "in" your business"?
While it's true that leaders at small businesses can fall into the trap of working on tasks better delegated to other employees, or subcontracted to outside experts, it's easy to take this mindset too far, and simply ignore important things, until it's too late.
Take insurance coverage for instance. For small businesses, this can be a major expense, but coverage for general liability, workers compensation, auto, and professional liability are essential. Many times these, and other coverages are required by contract terms, and may protect your company from being ruined by an otherwise straightforward claim.
Small businesses in particular, however, are vulnerable to the assumption that previous coverage remains suitable for the future operation of the firm. New, or fast growing companies can quickly outgrow current coverages by adding new staff, buying new equipment, or expanding into new locations, or adding new services. This growth, while positive, can expose your company to additional liability and unexpected costs.
Here at Orbis, we're reviewing our current coverage with our insurance broker to identify any gaps in coverage, something we've done on an annual basis each spring. I recommend any small businesses do the same - very fast growing firms (>100% annual growth) may need to review more often.
Don't let something that should protect your business become a threat. If it has been over a year since you have reviewed your current insurance coverage call your agent or broker today.
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