In every successful mid-sized company, key leaders drive performance. CFOs, HR and safety managers, and operations experts all play critical roles and should be involved in shaping the business, including the insurance program. Still, no one understands a company’s vulnerabilities, ambitions, growth goals, or direction better than its owner.
Insurance isn’t just a line item on the profit and loss sheet. It mirrors how a business operates, grows, and takes risks–but most importantly, how it protects itself, its assets, and its future. Without the owner’s perspective, an insurance program can easily drift away from the realities and long-term vision of ownership.
When Growth Outpaces Coverage
A successful construction company was experiencing rapid growth, hitting record sales, and landing major projects. Riding that momentum, the owner decided to start manufacturing some of the materials they used on jobs.
It was supposed to be a small, controlled expansion, but it took off faster than anyone expected. Manufacturing quickly became a major part of the business. Through an insurance lens, whenever there are changes in operations, the risk of something going wrong increases.
The CFO managed the company’s insurance program and, like most financial leaders, focused on controlling costs. Each renewal was about holding premiums steady and negotiating the best terms for the dollar. The owner, busy chasing growth, trusted their team and the process and rarely got involved. Over time, coverage decisions were made through a financial lens, not from a risk management perspective.
To save money, the company elected not to purchase professional liability coverage. After all, they were a contractor, not a design firm. All was well until a building component the company designed and produced failed, causing a partial collapse. The loss was massive. When the owner learned the policy didn’t cover the claim, it became clear the business had outgrown its insurance program long before the incident.
Different Roles, Different Lens
The CFO hadn’t done anything wrong; they simply viewed risk differently. Every role in a company sees risk through a different lens:
- The CFO sees expenses and cash flow.
- HR focuses on compliance and employee issues.
- Operations looks at productivity and workflows.
- Safety managers focus on preventing workplace injuries and OSHA compliance.
Often, only the owner sees how all these risks connect and how a single uncovered exposure can ripple through contracts, employees, customers, and reputation.
Delegation Is Smart But Disengagement Is Dangerous
As companies grow, their operations become more complex, and no one person outside of ownership has the full picture. That’s why owners shouldn’t fully delegate insurance decisions, even to capable teams. Each department’s input is valuable, but only ownership can ensure the coverage truly matches how their business runs today–not how it looked three years ago.
Delegation is absolutely necessary, but disengagement is dangerous. An owner doesn’t need to dive into every policy detail, but they should be part of key discussions about exposures, growth, goals, and changes to the business. At least once a year, they should meet with their broker and leadership team to ask the right questions:
- How has our business changed?
- What new risks have emerged?
- Are we protecting what matters most?