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More employees, more complexity: As your team grows and turnover increases, so does your exposure to employment practices liability. Companies have a 12% likelihood of having a claim filed against them. Small businesses—especially those with fewer than 100 employees—are disproportionately affected, accounting for roughly 41.5% of all employment lawsuits. The frequency of claims has risen sharply, with some sources citing a 400% increase over the last two decades. A proper EPLI policy is essential because General Liability insurance will not cover these exposures.
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With investors comes liability: While less common than in publicly traded companies, management liability claims still occur in private companies. One study from Willis Towers Watson notes that they account for 20% of claims over $1 million. A D&O policy becomes an important addition to your risk portfolio as outside stakeholders become more involved.
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Not all policies are created equally: As your company grows and expands its services, it’s critical to revisit your policy exclusions. New services may fall outside your current coverage. With liability carriers facing larger lawsuits, exclusions are increasingly used to limit exposure—but there are often ways to fill those gaps with the right policy structure.
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An umbrella that works, even on sunny days: As your business scales, a standard $1 million per-occurrence limit is often no longer enough. An umbrella policy increases your liability limits above your underlying policies and can extend over Auto, General Liability, and other coverages.
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Cyber threats: As your customer base grows, your cyber risk grows with it. A cyber-attack doesn’t just threaten your own data—you also become responsible for safeguarding the data of your clients, vendors, and partners. Cyber insurance not only protects you financially, but the right cyber carrier can also serve as a critical partner during a crisis.
With growth comes opportunity: Larger, better-run companies are often able to access insurance carriers that aren’t available to smaller businesses. As your business grows, it’s important to work with an agency like Lathrop Insurance that can connect you with the right partners to support and protect your business as you reach new heights.
