As your business evolves, your Business Insurance coverage should evolve with it. Many companies purchase a policy early on and rarely revisit it, only to discover gaps when it’s too late. Being underinsured doesn’t always mean having no coverage; more often, it means having coverage that no longer reflects your current risks. Here are three clear signs your business may be underinsured and how to fix it before it becomes a costly mistake.

1. Your Business Has Grown, But Your Coverage Hasn’t
Growth is great, but it also increases your exposure.
If you’ve added employees, expanded locations, increased inventory, or invested in new equipment, your original policy limits may no longer be sufficient. For example, a property policy that covered $250,000 in assets a few years ago may fall short if you now have double that in equipment and inventory.

Why this matters:
If a loss exceeds your policy limits, you’re responsible for the difference out of pocket. That can cripple cash flow or worse, shut your business down.
What to do:
Review your policies annually (at minimum). Make sure your limits reflect current revenue, assets, payroll, and operations.

2. You’ve Added New Services or Revenue Streams
Many businesses evolve beyond their original scope. Maybe you started as a contractor and now offer consulting. Or you added e-commerce to a brick-and-mortar operation. These changes introduce new risks that your original policy may not cover.

Why this matters:
Insurance policies are very specific about what is and isn’t covered. If your operations change but your policy doesn’t, claims tied to new activities may be denied.
Common gaps include:

• Professional liability exposures not covered under general liability
• Cyber risks from online transactions
• Product liability for new goods being sold

What to do:
Talk with your agent about any changes in operations. Even small shifts can require endorsements or entirely new policies.

3. You’re Choosing Lower Premiums Over Adequate Protection
It’s tempting to reduce costs by increasing deductibles or lowering limits, but doing so without understanding the trade-offs is risky. If your premium seems unusually low compared to similar businesses, it could be a red flag that you’re underinsured.

​Why this matters:
Lower premiums often mean:

• Higher out-of-pocket costs during a claim
• Coverage exclusions you may not be aware of
• Insufficient limits for worst-case scenarios
• Lack of coverage

What to do:
Focus on value, not just price. A slightly higher premium can mean significantly better protection when you need it most.

Being underinsured isn’t always obvious until a claim exposes the gap. The key is staying proactive. As your business changes, your Business Insurance should keep pace. A quick annual review with a knowledgeable advisor can help ensure you’re not leaving your business vulnerable. Because when it comes to Business Insurance, the real cost isn’t the premium, it’s what you pay when you don’t have enough coverage. If you have any questions or would like a quote, please fee free to contact me. 

Jason Matison
Commercial Insurance Agent
Austin, Texas

In today’s marketplace, selling a product, whether physical or digital, comes with more exposure than ever before. From supply chain complexity to heightened consumer expectations, even the most diligent businesses face risks that can’t be fully controlled. That’s where Product Liability Insurance becomes not just helpful, but essential.

What Is Product Liability Insurance?
Product liability insurance protects businesses against claims that a product they manufactured, distributed, or sold caused injury, illness, or property damage. These claims can arise from defects in design, manufacturing errors, or even inadequate warnings or instructions. Even if your business didn’t directly manufacture the product, you can still be held liable simply for being part of the distribution chain and introducing the product to the marketplace. 

Customers today are more informed and more likely to pursue legal action when something goes wrong. Online reviews, social media, and legal advertising have made it easier than ever to raise concerns and file claims.

The True Cost of a Claim
Many businesses underestimate the financial impact of a product liability lawsuit. Costs can include:

• Legal defense fees (even if the claim is unfounded)
• Settlements or court judgments
• Product recalls
• Reputational damage
• Lost revenue during litigation

Without proper coverage, a single claim could severely disrupt or even bankrupt a business.

Real-World Examples
Consider how easily a claim can arise:

• A small electronics company sells a device that overheats and causes a house fire.
• A food manufacturer unknowingly distributes a contaminated batch, leading to illness.
• A retailer sells a product with unclear instructions, resulting in customer injury.

In each case, multiple parties, not just the manufacturer could be named in a lawsuit.

Who Needs It?
If your business is involved in any of the following, you should strongly consider Product Liability Insurance:

• Manufacturing products
• Importing or distributing goods
• Selling private label items
• Operating in food, beverage, or consumer goods industries
• Participating in e-commerce or direct-to-consumer sales

Product liability risk isn’t a question of if, it’s a question of when and how severe. As markets expand and products reach more customers faster than ever, the margin for error shrinks. Product Liability Insurance acts as a critical safety net, protecting your balance sheet, your reputation, and your long-term viability. In a business environment where one incident can escalate quickly, having the right coverage in place is a strategic necessity, not just a precaution. If you have questions about Product Liability Insurance or any other type of Business Insurance, please feel free to contact me.

Jason Matison
Commercial Insurance Agent
Austin, Texas

When it comes to Business Insurance there many endorsements. One that comes up frequently is Waiver of Subrogation (WOS). A Waiver of Subrogation in Business Insurance is a provision where your insurance company agrees not to pursue a third party to recover money after paying a claim on your behalf. 

How it normally works (without a waiver)
Under the principle of subrogation, if your insurer pays for a loss caused by someone else, they can step into your shoes and sue that responsible party to recover the money.

What changes with a waiver of subrogation
When you agree to a waiver:

• Your insurer gives up that right to recover
• Even if another party caused the damage, they won’t be pursued for reimbursement
• The loss essentially stays with your insurance policy

Why businesses use waivers
Waivers are very common in contracts, especially in:

• Construction projects
• Commercial leases
• Vendor or service agreements

They’re used to:

• Reduce lawsuits between partners
• Keep business relationships intact
• Simplify claims handling after a loss

Example
Let’s say:

• A contractor accidentally causes a fire in your building
• Your property insurer pays the claim

Without a waiver:
Your insurer could go after the contractor to recover the payout
With a waiver:
Your insurer cannot pursue the contractor, even if they were at fault

Important considerations

• Endorsement required: Most policies require a formal waiver endorsement
• May increase premium: Insurers take on more risk when they give up recovery rights
• Applies to specific parties: Often limited to those named in a contract

Where you’ll see it
Waivers of subrogation commonly appear in:

• General Liability policies
• Workers’ Compensation policies

Bottom Line
A waiver of subrogation is essentially a risk-sharing and relationship-protection tool. It trades the insurer’s right to recover losses for smoother business dealings and fewer disputes, but it can shift more financial burden onto the insurance policy itself. If you have questions about any other Business Insurance topic, or would like a quote, please feel free to contact me. 

Jason Matison
Commercial Insurance Agent
Austin, Texas