You closed the big deal, now make sure your company's insurance coverage meets the needs of that big project.
Congratulations to Your Team
Your sales and marketing team did it! Congratulations, your company signed the contract for the big project! Those months of time and money spent in the sales cycle paid off! Now it’s time to implement the plan. The good news is that your team is bigger than you thought! Your insurance agent is really a partner in your success.
Confirm Your Insurance Coverage
This big project has many moving pieces and phases, and you need to make sure it all runs smoothly. Your first step is to contact your insurance agent to confirm you have the coverage you need. This conversation is going to cover all the pieces you know about, and a few you may not have even thought about. In the end, the goal is to make sure you get the biggest ROI (return on investment).
A big project may mean expanding your team. New employees affect your insurance; workers’ compensation, liability, errors and omissions, and health insurance. Outsourcing may also require insurance adjustments, especially if they are required to be on-site; at your office or at the project location.
Some large projects also require insurance certificates, and the client sets the coverage amount. If your current policy is too low you’ll need to increase it, which may also increase the cost to you.
Another insurance consideration is the value of the project. Some projects may require you to store some of your customers finished materials or inventory as you complete your contact. Property of others coverage is something you might need, if only for a temporary amount of time.
Additionally, if you've purchased extra raw materials to have on hand for this new large project, the value of the materials may exceed your current insurance limits. For example, an IT firm that replaces multiple client computers and has them all delivered to their office first. This also applies to businesses that have peak seasons (i.e. a florist around Valentine’s Day).
Learn from Experience
Your insurance agent really is your partner. They have many other clients (preferably in your industry) and have handled many types of projects. Their experience will help you better understand the insurance coverage you need for this big project, as well as every other project you work on.
A great insurance agent is involved in the growth of your business. When you sign any new contact, in addition to consulting with your lawyer, it’s always a good idea to have a conversation with your insurance agent as well.