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All You Ever Wanted to Know About Insurance

Insuring Your Business As It Scales

The world of startups is like the wild west of modern business. Countless small, young companies are competing to bring new services that help improve our society and the world at large. 

One of the toughest aspects of owning and running a startup is figuring out how to scale. This means that the business is growing, and the company needs to adjust to grow with it. At Pepper, Johnstone & Company, we’re all too familiar with the challenges that lie ahead for companies of scale. For rapidly expanding companies, the growing pains can be quite difficult at times. Though this is a great problem to have, it’s still crucial that companies make sure they’re covered. This includes ensuring that they have the proper layers of insurance in place as they move ahead. Startups that fail to get coverage, however, are exposed to financial ruin. 

What is scale?

There has never been a time of greater growth for American business. Until recently, we had seen growth at a record-setting pace, but not all growth is created equally. 

Business growth happens every day. All successful companies, and sometimes, even companies that aren’t doing so well, experience growth. Scale, however, is a different kind of growth. To scale your business means to grow it rapidly. Rapid growth comes with many obstacles, from hiring a lot of new employees to expanding your offices. These decisions are seen as obstacles or challenges because they’re risks; you can never be sure that you will get a return on what you pay for. 

As companies scale, growing at a faster pace every day, it becomes more difficult to see every inch of the business. Insurance allows coverage for new employees, products, and services that haven’t been implemented. In addition to fiscal risks, the company becomes exposed to legal risks as it takes on more business in new areas. 

This is why it’s more important than ever for companies of scale to make sure that they’re properly insured. Having the right insurance can be the difference between adequately protecting the company from unexpected, catastrophic loss, and financial ruin.

Umbrella insurance

Aspects of insurance that deter many business owners are the variety and breadth of policies. The insurance landscape can seem overwhelming, yet without it, your business is exposed to extreme and unnecessary risk. The first step is to make sure you talk to one of our experts at Pepper, Johnstone & Company, particularly about business insurance. Once we help get you assimilated with the facts, it becomes easier to understand what is both reasonable and necessary for your business, so we can help you get the coverage you need. 

One example of simplification is the need for commercial umbrella insurance. Umbrella insurance is a type of liability insurance that essentially makes sure you’re covered in all situations. Of course, commercial umbrella insurance is created specifically for businesses. 

At Pepper, Johnstone & Company, we can help you find commercial umbrella policies to ensure that your startup will be covered as it continues to scale. According to, over 78 percent of all U.S. businesses are structured as a partnership or sole proprietorship. For the majority of small business owners, this form of ownership puts both your business and personal assets at risk. Owning the right CGL insurance policy helps protect both your business and personal life from financial ruin.

A common misconception for many startups is that, as a limited liability company (LLC), they’re protected from liability and umbrella insurance is unnecessary. On the contrary, business owners can’t escape liability simply by structuring the business under these legal entity types; moreover, business owners can be held personally liable. 

In today's litigious society, even small mishaps can result in large lawsuits. That's why general liability insurance, along with property, worker's compensation, commercial automobile and commercial umbrella insurance is essential for most companies. 

Make sure you’re insured 

We wanted to take the time to talk about scaling startups. Coverage is often the last thing on the minds of busy owners who are worried about fulfilling orders and hiring new talent. Disaster, however, does not wait for the right time to strike, and it can come in many forms. In fact, it’s exactly when a young startup is burning cash that they’re most vulnerable to a litigious situation. 

Call us at Pepper, Johnstone & Company today to learn more about umbrella liability insurance. You will get a chance to talk to experts who have decades of experience with insuring young companies. We promise, you will be glad that it was one of the many tasks you did today to help your startup continue to scale.

Pepper, Johnstone & Company is independently owned and locally operated to handle your insurance needs, be it commercial insurance, home insurance, or just general insurance.  We focus on Athens and offer affordable and reliable insurance choices all across Alabama, Georgia, Mississippi, North Carolina, South Carolina, Louisiana, and Tennessee.  We will help you find the right combination of tailored, personalized insurance coverage at just the right price to fit your needs. Contact us today to learn more about how we can help you.