All businesses require some form of insurance to secure their financial interests and assets. However, every business has unique circumstances that may influence their coverage needs. The size of a business can be a particularly significant factor in determining both its insurance needs and costs. At Amco Auto Insurance, we’re proud to offer guidance on this complicated topic.
How Business Size Affects Coverage 
Consider how the following types of businesses may vary in their insurance needs and how rates may be impacted:
- Small businesses—Typically, small businesses have fewer assets and employees, which generally translates to lower insurance premiums. However, they still need essential coverage such as general liability, property insurance and workers’ compensation. Small businesses might also consider business interruption insurance to safeguard against unexpected disruptions. Due to their often-limited resources, small businesses may want to consider bundling coverage through a business owners policy, which can help limit costs.
- Medium-sized companies—As businesses grow, their insurance needs typically become more complex. Medium-sized enterprises usually have more employees, higher revenue and greater assets, which can increase their risks and exposures. More assets and a larger staff can lead to a need for greater coverage limits and potentially additional policies, such as employment practices liability insurance and cyber liability insurance. These increased needs generally also lead to greater costs.
- Large corporations—Larger businesses may operate in multiple locations, rely on complex supply chains and employ large workforces. Consequently, their insurance needs are often extensive and varied. Large corporations typically require a wide range of policies, including directors and officers insurance and commercial umbrella insurance. As these businesses secure more policies, add essential endorsements to their insurance, and increase coverage limits, they will likely need to budget more for their premiums.
In most cases, as a business grows, its insurance needs and costs increase. Understanding these differences is crucial for businesses to ensure they are adequately covered at every growth stage.
We’re Here to Help
Contact Amco Auto Insurance today to learn more about how a business’s unique circumstances may impact its coverage needs and costs.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
