Do you have the business
insurance you need?
For want of a nail, the shoe was
lost. When we're talking about your business, losing the shoe can be serious
indeed.
Think of business insurance as
the nail; as in the old saw, it can help you hold onto what's really important.
You personally cannot control or eliminate every potential risk that threatens
your livelihood. Business insurance can provide the protection against these
risks... if you carry the right kinds.
Unfortunately, insuring your
business is not as simple as insuring your car. Because your business is
unique, you'll need to design a package of insurance that meets your business
needs and provides the level of protection you're comfortable with. Your first
decision is to decide which types of insurance your business needs.
Two types that all businesses
need are property and liability insurance.
Property
insurance protects the assets your business owns, including the building
and equipment, from destruction or damage. Even if you run a home-based
business and have home insurance, you'll need to protect your business assets
with separate contents insurance; your home owner's policy will not cover business
equipment.
Contents
insurance protects your business equipment from perils such as fire, flood,
or theft. To determine how much property or contents insurance you'll need,
create an itemized list of your business' assets and their individual dollar
values. Then decide which assets you actually want to insure and for what
value, which will determine the insurance premium.
In some cases, you may decide
against insuring a particular asset, because it just doesn't warrant the cost
of the premium. In other cases, the premium may be well worth paying. Ask
yourself, if this equipment, such as a computer, was stolen, would I be able to
afford to replace it? If the answer is no, you should insure it.
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