As a small business owner, you know how hard you work to grow your business and keep it running efficiently. You find the perfect merchandise, hire the best workers you can, and market your business to keep new customers coming in. All this hard work needs to be protected, so you can keep focusing on the things you love.
As you review your insurance this year, here are three tips to keep in mind.
Evaluate your business property
Making a list of your business property with its corresponding values and checking it twice is a good start, but you should never go through this process alone. If you are working with an independent agent, they may go through this step with you. However, discussing this with another person close to your business—a business partner, key employee, or even your spouse if they are involved with the business—is a must. Ask them to look with you or on their own and then compare. The goal is to make sure in the event of a total loss, whether it’s a fire or tornado, you are covered to fully replace your building, any attached equipment (which is considered part of the building), and all your business personal property (property in and around the building that is not permanently attached). Finally, make sure all your inventory is covered to replacement cost. This varies by what type of insurance coverage form is used, so be sure to confirm.
Also consider additional coverage needs, like outdoor sign coverage if you have a large outdoor sign or building or ordinance coverage if you have an older building that would require updates to bring it up to current building codes after a loss.
Assess your business risk
Calculating your business risk can be a disheartening task, but it is a necessary one. Think about what accidents you could be liable for. Of course, you need workers' compensation for your employees and general liability for customers and other third parties who enter your premises or may be impacted by your operations. Make sure you consider other liability concerns as well. If you are providing a service with your products, such as wedding invitation printing or catering, professional liability is a must. Cyber liability coverage is a more recent necessity. If you have any customer information on your computer and it is connected to the Internet, you should have cyber liability coverage.
Find an insurance partner you can trust
Protecting your business, assets, and employees is as complicated as your work, and it requires the same level of expertise. When it is time to shop for insurance, make sure you give it the time and attention it requires, so you can find a partner you trust. Independent agents know your community, and they can review your unique business exposures and risks with you or for you.