Let’s say you have a construction company that’s growing. You need coverage. All businesses need worker’s compensation and liability insurance. In addition, anything surrounding the construction business, like property and auto, equipment—you name it—can be covered. Less common policies include builder’s risk insurance in case of fire or other destruction during the construction stage. Increasingly, the workplace also needs to consider which of your insurance products may or may not cover wrongful termination, sexual harassment, and age discrimination. But which business practices (like liability and project specific policies) fall into the usual coverage categories, and which ones are critical but not covered in the ‘usual’ package?
Everybody knows that insurance is not always a happy expense to account for, especially when the excitement of a new business is all about revenue. It can be expensive. It can be complicated. And you sure don’t want another policy that you don’t need.
But here’s the smackdown.
As a business owner or developer, you’re not buying insurance for today. You’re really buying it for 6 years down the road. In Colorado, the client’s clients have recourse for 7 years.
After the business has boomed and some change within the company has occurred, one of these 7-year events can come back to haunt you.
The key is to anticipate these problems and sleep soundly at night. First, you must establish the lowest premium to match anticipated revenue. Then it’s smart to check in with your broker throughout the season to make needed adjustments, ensuring you won’t be slammed with unexpected fees. As you grow, you want to make sure your contracts are favorable for you to be in business next year.
This kind of analysis requires a consultative approach instead of just buying the usual coverage. Find the pain early and solve the problem today, and in 7 years you won’t be caught off-guard.