Business insurance isn’t one of those “optional” steps in building your company. Federal regulations require certain levels of coverage, and each state has their own requirements layered on top of that. Beyond the law, having appropriate and adequate coverage is just good business. We don’t know what we don’t know, and absent a mystical crystal ball, none of us can predict what’s around the corner. Solid business insurance serves as a coat of armor for when there’s some sort of dragon lying in wait.
But your business is your baby, and much like actual children, it’s going to grow and change over time. With those changes and any changes in the world around you may come new business insurance needs. By working with a team like us at the David Nelson Agency, you can be sure you’re ready to face whatever comes next with confidence. Here’s when to set up a call.
Policy Renewal Periods
Most Illinois business insurance policies renew on an annual basis. Though this renewal might seem like a matter of course, blindly renewing your policy squanders a significant opportunity.
Your policy renewal period offers a built-in reminder to talk through your options with your insurance team. The period’s ties to the calendar gives you ample time to review your current coverage, do any independent research you like, and compile a list of questions to ask. Any insurance team with their salt will look forward to these meetings.
Business Structure Changes
Business insurance in Illinois can be greatly influenced by the internal structure of a company. If your company is transitioning into an LLC or partnership structure, for instance, the way you handle payroll will necessarily change, which will in turn impact worker’s compensation insurance.
But that’s just one thing to consider prior to making the structural change. Once the change is in the works, you’ll likely need to approach securing business insurance as you would if you were getting policy for the first time. After all, the structural change essentially renders you a new business entirely.
During such transitional periods, it’s a good idea to get in touch with your Illinois business insurance provider to discuss what next steps will look like.
Growth and Diversification
Every business owner wants to see their enterprise thrive, but as a saying wholly inappropriate for our brand goes, “mo money mo problems.”
Ill-fated attempts at generational humor aside, high periods of growth, expansion, and diversification can introduce unexpected complexities to your business insurance in Illinois. Good news that could impact your policy and coverage needs include things like:
- Moving into a new production facility to accommodate an increase in order flows
- Diversifying into a new line of business that complements existing offerings
- Acquiring a new company
- Greatly increasing your work staff
None of these are bad things, of course, but all can influence the type of coverage required, amount of coverage appropriate, and the overall cost to your company. These types of moves get factored into the risk calculus that fuels policy recommendations and rates.
Is your pace of expansion even faster or broader than that? If your growth is taking your company into different states, it’s crucial that you consider any variations in business insurance requirements across state lines. Touching base with a trusted adviser like those at the David Nelson Agency can help you cover all your bases.
Major Business Investments
Part and parcel to growth is often a significant allocation of resources toward facilitating that growth. This could include replacing your older equipment to improve efficiency. It might involve clean energy improvements like installing solar panels a a facility. Maybe you’re upgrading your IT infrastructure to increase productivity and safeguard sensitive data.
These sorts of investments can cut both ways when it comes to business insurance. Investments that make your company more resilient could affect your rates in one direction. The accumulation of assets could make expanding your coverage prudent. Protecting everything in a cost-effective manner will get easier if you’re regularly reassessing Illinois business insurance with a professional.
Legislative or Regulatory Changes
Because the world makes little sense sometimes, nothing changes as fast or as slowly as the legal climate it which your business operates. The fight for more favorable treatment can stretch over decades, only for an entire system to be upended by a regulatory ruling, executive order, or new piece of legislation.
Smart businesspeople know to keep an eye on this landscape and garner the perspectives of legal and financial experts as they prepare for the future. Your friendly neighborhood Illinois business insurance specialist should be on that list. Our unique understanding of the insurance world – and, at the David Nelson Agency, our experience as a small business with similar concerns – allows us to offer insights others might miss.
If you have any concerns about how upcoming regulatory or legal questions will or could impact your company and business insurance needs, regularly reevaluating your coverage is the best way to make sure you’re ready for whatever the government throws your way.
Changes in laws or regulations that affect your industry may require modifications to your insurance coverage to ensure compliance and adequate protection against newly identified risks.
Dollars and Sense
Folks often think that selecting your business insurance is the most complicated part of the process. In reality, the bigger challenge with Illinois business insurance is frequently maintaining the most effective coverage.
But it doesn’t have to be. When you work with the team at the David Nelson Agency, we can help you systematically review and sustain the best business insurance for your specific company. We’re honored to be your trusted partner as you shoot for the moon.