Is your Small Business Properly Insured?
In a recent article from the Motley Fool, five different small business insurance policies were looked at. Business insurance can be important as a stop-loss when things go wrong, helping to protect the capital invested into the business which may represent all the assets to a business owners name, depending on their level of investment.
Part of making smart decisions regarding small business coverage is making sure that you possess a real understanding of the risks facing your particular business. Every small business is unique, and will face different challenges based on location, the strength of its sales, as well as what kinds of products it provides. Before you make final decisions regarding the insurance that you purchase for your business, sit down and analyze where you stand in terms of risk, and how you can balance the types of coverage that you purchase to offer protection from the potential negative events that can befall you as well as remain affordable. Historical data on the types and frequency of natural disasters in your area is one thing that business owners should be sure to look at, since a person living on the coast may be more inclined to invest in flood insurance than a business owner in a high and dry part of the country.
What kinds of liability are present in your business environment? Your products, your business environment, and any services that you offer all carry liability in the event that something goes wrong, such as an on the job injury or a product that is improperly prepared. When being sued has the potential to wipe out a business paying for their legal fees out of pocket, taking precautions relative to the function of your business is a essential part of preparedness.
What external, negative events does your business stand a chance of falling victim to, and is there a way to combine insurances you need in order to save money? When you have identified the liability you must protect against and disaster insurance, loss insurance and any other supplemental insurances that might apply to your business, shop around to see if there is a possibility that you can roll your insurance package into a broader plan that will save you money. Knowing specifically what insurances you consider essential before you begin to negotiate will allow you to settle on the best price and package without worrying that you left out a piece of your coverage.
Photo Credit to Chris Potter