The traditional business model in Rochelle Park, NJ and elsewhere is that when employees are hired, they stay a long time, and the company eventually grows if successful. However, with the internet and today’s capabilities, businesses small and large are realizing that they can scale up and down in size very quickly by focusing on their core functions and farming out support or temporary needs. That, however, means that the very nature of the business becomes extremely flexible, which one would think doesn’t quite match what business insurance would cover. That said, the way a business works isn’t the only thing changing with the times.
The fundamental approach to commercial coverage is that the entire business is addressed in a policy. And that includes what represents the business at the time the policy is in place unless specified otherwise. So while the nature of the labor may change with contracting out, if the resources are a bona fide part of the business, they become part of the risk that is covered. Where the contractors are part of another business, however, then the policy would not include them, and special terms would be needed to extend coverage, such as in the case of a temporary partnership or similar.
The folks at the Insurance Place can help companies in Rochelle Park, NJ and elsewhere dealing with coverage needs and flexible business models. Instead of guessing and ending up with a commercial insurance policy that doesn’t work when needed the most, a new business should set up coverage right the first time. Call the Insurance Place to put things right from the start.