Posted by : Dan Levenson Tuesday, June 17, 2014
Knowing your business’ insurance needs may not be as glamorous as planning your grand opening, but it gets the job done, nonetheless. Without insurance, you leave your business, your assets, and your employees unprotected from risks, which can be devastating on all angles. Determining your specific needs is one key step, and here are a few more tips.
Begin by clearly defining what your entire enterprise is all about. You could do this by writing a single paragraph of no more than four sentences, describing your business. To utilize this effectively, consider these tips:
- Define the four questions Where, What, When, and How.
- What are you selling?
- Who will manufacture the stuff you sell?
- Will there be employees? If so, how many?
- What types of equipment will be used?
- How is the business set up?
- Will vehicles be used?
Given these information, take note of all the possible risks in your business. The Small Business Administration (SBA) recommends that you analyze your business liabilities so that you can predict or prepare yourself against potential events that could lead to a loss, either in terms of manpower, financial, or real estate resource. Your findings should also provide an estimate of the costs that will be incurred in such loss, and how you intend to address them in the most cost-efficient way.
Also, take note of your state’s requirements. If the law mandates that your business should have coverage for certain aspects in your business, then make sure you get coverage for them. While federal government doesn’t require such, most state governments do. With prudence and attention in these matters, you can adequately make business decisions without getting bogged down in legal concerns.