Guest blog:What Insurance Should Your Growing Business Consider?


From day one of running a business, your countless efforts have all been an attempt to grow your company into something bigger. A successful business should be progressive, but what many business owners don’t realise is that the bigger your business grows, the more risk it can be exposed to.

It’s important to regularly update your company’s insurance policy as your business grows to accurately reflect the risks that it is exposed to. So, when it comes to renewing your business insurance policy, remember that the policies which covered your business last year may not be appropriate anymore. For instance, your building and contents insurance policy may not need to change at all, but other policies, such as employers’ liability may need to be updated or entirely new ones added.

To avoid being caught out with insufficient cover, which can lead to expensive costs if a claim is made, it is important to address every risk you may encounter as your business continues to grow.

Every business will have different needs when it comes to insurance. Below, we have listed three common types of cover that many businesses consider when expanding.

Employers’ Liability Insurance

Depending on your circumstances, you may need to consider taking out an employers’ liability insurance policy. If you are currently operating as a sole trader, this policy is often a legal requirement if you want to hire a workforce. However, if you already employ staff then it is recommended that you revisit your employers’ liability policy to assess whether it still meets your needs. Extensions can also be added to a variety of insurance policies — for example, if a number of your employees are required to work overseas as your business expands, you will require an overseas work extension.

Directors’ and Officers’ Insurance

As your business grows and employees are hired you may want to implement a hierarchy system of managers and executives to ensure the business runs smoothly. In this instance, directors’ and officers’ insurance can be used to cover the extra risk assumed by your senior staff. For example, if one of your company officers is accused of malpractice, your company may not be able to indemnify them due to financial or legal restrictions. Directors’ and officers’ insurance could provide financial assistance for legal fees or compensation in this situation.

Business Interruption Insurance

Once your business is in a position where it is making a profit, you should definitely take out extra cover to make sure that unexpected events, which could cause interruption, do not undo all of your good work. As your business begins to sustain larger operations, you will find that cash flow can become fragile. It’s important to take measures to protect your profit margins, should something happens that prevents  your business from operating and sustaining its own cash flow. Watch this video on Business Interruption for more information.

These are just a few examples of the more frequently sought-after insurance policies for growing businesses. However, it’s important to remember that every business is unique, and so it’s important to check with an insurance broker if you are unsure of which policies could be useful for protecting your business. Try using the MyRisk business tool to see what risks your business might face.


James McAllister is an energy enthusiast and writer for the Make It Cheaper group. When he’s not writing about energy or insurance, he enjoys finding unique and interesting ways to save businesses money on their overheads. Follow him on Twitter @JaMacca01 for daily tips and tricks to save your business money.