Insurance Considerations Before You Grow: Coverage updates to consider before taking on new work or locations.

Spring is growth season. New projects kick off, hiring ramps up, and many businesses finally act on expansion plans they’ve been sitting on all winter. But here’s the question most business owners forget to ask before they grow: Will my insurance still work once I do?

Expansion is exciting. It also changes your risk profile, sometimes dramatically. Adding employees, vehicles, services, or locations without updating your insurance can leave dangerous coverage gaps that only show up after a loss. Before you take on new work this spring, make sure your insurance program is ready to grow with you.

Here is a spring expansion list focused on the insurance updates that matter most.

New Services or Projects Can Create Uninsured Risk

When a business expands, it often starts offering new services or taking on different types of jobs. That is great for revenue, but it can also quietly push you outside the scope of your existing coverage.

Many general liability and professional liability policies are written around specific operations. If you begin performing work that is not listed or contemplated in your policy, claims related to that work may be limited or denied altogether.

Example:
A contractor who traditionally handles residential remodels decides to take on light commercial projects in the spring. The exposure changes significantly, including higher limits requirements, different contract language, and increased jobsite risk. Without updating the policy to reflect commercial operations, the contractor may be underinsured if a loss occurs.

Spring is the perfect time to review your operations and confirm that your policies accurately reflect what you actually do today, not what you did last year.

Growth Often Means More People, Vehicles, and Equipment

Expansion almost always involves hiring. It may also include adding company vehicles, purchasing new equipment, or allowing employees to use personal vehicles for business purposes. Each of these changes carries insurance implications.

Workers compensation policies are based on payroll and job classifications. Hiring additional staff or changing job duties without updating payroll estimates can result in surprise audit bills or inadequate coverage.

Commercial auto policies need to be updated when new vehicles are added or when employee driving habits change. Equipment purchases may require higher property limits or inland marine coverage to protect tools and mobile equipment offsite.

Example:
A service business hires two new technicians and adds a van to keep up with spring demand. The van is insured, but the tools inside are not scheduled. After a theft, the vehicle is covered, but the equipment is not fully reimbursed because coverage limits were never increased.

Before spring growth accelerates, it is smart to take inventory of new hires, vehicles, and assets and make sure coverage keeps pace.

New Locations and Contracts Bring New Insurance Requirements

Opening a new location or expanding into a new territory introduces new risks and often new contractual obligations. Leases, client agreements, and vendor contracts frequently include insurance requirements that differ from what you currently carry.

These requirements may include higher liability limits, additional insured endorsements, waivers of subrogation, or specific policy wording. Missing even one requirement can delay projects or put you in breach of contract.

Example:
A business opens a second location and signs a new lease. The lease requires higher general liability limits and names the landlord as an additional insured. Because the policy was never updated, the landlord rejects the certificate of insurance and delays the opening.

Reviewing contracts and location changes with your insurance advisor before you sign can save time, money, and frustration.

Spring Is the Right Time for a Coverage Checkup

Growth should be exciting, not stressful. A quick insurance review before spring expansion can help ensure your coverage evolves alongside your business and protects what you are building.

If you are planning to add new services, hire employees, purchase equipment, or open new locations this spring, now is the time to talk through those changes.

Contact your Hertvik Insurance Group agent today with any questions regarding your business insurance this spring. We are here to help make sure your coverage is ready for what comes next.