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.
