6 Risks Small Business Owners Face When they Grow


March 1st, 2017

Most small businesses expect to grow in 2017. With that growth, however, comes risks. The commercial insurance agency surveyed 1,006 small business owners after the election last year on their expectations for 2017. Small business owners expose themselves to added liability whenever they expand.

 

Risks that could Affect your Business

1. Hiring an employee

  • One third of respondents plan to bring a new employee on board this year. While this is an excellent indicator of overall business health, it also means as many as 33 percent of small businesses will need to update their Worker’s Compensation Insurance in 2017.

2. Moving to a new location

  • More than one in five respondents (23 percent) plan on moving to a new office space in 2017. That suggests growth, whether the move is from a home office to a commercial building or from an existing office to a bigger one. Commercial Property and Casualty is tied to location, thought, so anyone filling out a change-of-address form should update these policies with their agent.

3. Offering a new service

  • Thirty percent of respondents plan to add a service in 2017. A savvy growth move, expanding service offerings can help attract new clients and increase revenue from existing clients. From a risk management perspective, updating Professional Liability Insurance is crucial because new services may come with new risks. The update may not change much about the policy or it’s price, but it’s a good way to make sure a business is still covered as it’s business evolves.

4. Selling a new product

  • Thirty-four percent of respondents, or just over one in three, plan to introduce a new product this year. As part of this expansion, business owners may need to update the Product Liability Insurance portion of their General Liability Insurance. That’s the part of the policy that offers protection if a product inures a customer or makes them ill.

5. Buying new equipment or furniture

  • A whopping 58 percent of respondents plan to buy new gear in 2017. If those items are valuable, business owners should verify that their Business Owner’s Policy or Commercial Property Insurance policy has adequate limits to cover them.

6. No plans for growth in 2017

  • For the 18 percent of business owners who don’t plan on any of the growth discussed, their current small business insurance will likely be sufficient, unless they’re among the 75 percent of businesses that are under insured. Bottom line: if you’re doing other housekeeping work at year end, verifying that your insurance is up to date is a smart move.

 

CONTACT US            GET A FREE QUOTE

Jamie Mowery Lewis

Marketing Executive

Jamie joined the Gunn-Mowery team as their marketing executive in 2016, after previously working as an event coordinator for the Central Penn Business Journal and the Pennsylvania Credit Union Association. As the Marketing Executive, she is the main point of contact for external communications, community relations and media inquiries. She takes pride in enhancing the Gunn-Mowery brand, including the website, social media platforms, design and marketing campaigns. Jamie is a member of the Leadership Harrisburg Area Community Leadership Series Class of 2019 and is the Chair of the Gunn-Mowery Upside of Giving committee. She attended West Chester University of Pennsylvania where she graduated Magna Cum Laude with a Bachelor’s degree in Communications



When she’s not in the office, you can find Jamie spending time with family, friends and her beagle, Lexie. She loves being outdoors, whether it’s on her farm, playing golf, relaxing on the beach, or cheering on the Nittany Lions in Happy Valley.

Call Now Button