How Your Insurance Needs Change as the Size of Your Business Grows


When starting a business, you always have the goal to continue growing in mind. The last thing on your mind would be the types of insurance coverages you would need to have your business running at full efficiency. But how do you know what insurance to get for your business size? What happens when your company succeeds and sees growth? Not to worry, we have complied a bit of information on what to do when it comes to insurance coverages for you growing business below. The types and amount of insurance that you need for your small business are based on several factors. First things first, you need to ask yourself: What type of business are you in? Where is it located? Do you have employees? 

Small Sized Businesses 

How can you classify your business as a small business? Ask yourself these two questions: Do you know all your employees by name? Does your business make less than a few million dollars a year? If you were able to answer yes to both of these questions, it’s safe to say you are operating a small business. If you prefer to see numbers to decide business size, many insurers consider businesses with 50 or fewer people a small business. Now onto insurance you need to have when you are a small business. A business owner’s policy, typically referred to as a BOP, is available only for businesses with fewer than 100 employees and revenues of up to about $5 million or less. You have the option to purchase customized insurance to cover specific aspects of your business, but obtaining a BOP is a pretty standard business insurance policy that all small businesses should have onto their coverages.  

Policies You May Need: 

  • General Liability 
  • Professional Liability 
  • Worker’s Compensation 
  • Cyber Liability 
  • Commercial Auto 
  • Employment Practices Liability 
  • Directors & Officers 
  • Business Owner’s Package 

Medium Sized Businesses 

Typically, if you have seen a growth in your business that has resulted in your company having between 50 to 1,000 employees and annual revenue between $10 million and $1 billion, you’ve moved into the medium sized business category. Insurers will usually have special policies that are set aside for businesses within this category that may combine property and liability coverages. If your business owns expensive equipment or business locations in more than one state, you can seek special customized policies.  

Policies You May Need: 

  • General Liability 
  • Professional Liability 
  • Worker’s Compensation 
  • Cyber Liability 
  • Commercial Auto 
  • Employment Practices Liability 
  • Directors & Officers 
  • Business Owner’s Package 
  • Commercial Property 
  • Commercial Liability 

Large Businesses 

If your business has at least 500 employees, we can safely categorize your business as a large business. These forms of businesses usually consist of multi-million-dollar risks, and commercial insurance that is customized to meet a company’s specific needs. Larger companies usually will have dedicated employees who maintain and practice risk management for your company.  

Policies You May Need: 

  • General Liability 
  • Professional Liability 
  • Worker’s Compensation 
  • Cyber Liability 
  • Commercial Auto 
  • Employment Practices Liability 
  • Directors & Officers 
  • Business Owner’s Package 
  • Commercial Property 
  • Commercial Liability 
  • Property Solutions 
  • Casualty Solutions 

It is important to keep in mind that these insurance policies may not all apply to your specific business. Keep in mind that you may require special forms of coverage depending on your business. For more information on what types of insurance your business needs, reach out to your local insurance agent today.