For a very long time Sandy had dreamed of expanding her tiny but very busy gift shop. She had visions of creating a relaxing cafe where people could come and enjoy delicious foods and beverages. Sandy knew that getting a cafe off the ground would take a lot more than just a vision.
One of the first things she needed to determine was how much her insurance would increase as she went from merely a gift shop to a business which was responsible for food preparation and service.
While she was confident that her insurance company had conducted proper risk management calculations when she set up her policy for her gift shop, she was sure that a new vendor risk assessment would have to be completed prior to the opening of a cafe. As Sandy thought about her possible endeavor, she tried to imagine some of the possible insurance coverages she could need and how she could proactively address them. For anyone who is a hoping to open or run their own small business, it is important to understand policy and coverage options.
The majority of small business owners are not trained to understand the complexities of insurance policy structures. Typically, business owners tend to be entrepreneurs, who excel in the visionary realm and can get bogged down with the details of the day to day. This is a bit of a generalization, but the point remains that insuring details can be difficult to process unless someone has a background in the insurance industry. Be sure to review a policy carefully and utilize the services of an insurance agent or your lawyer.
Perhaps the worst place a small business owner can find himself in, apart from bankruptcy, is with an uncovered insurance claim. While policy costs can seem far too expensive, the financial strain of having to address a complaint or a lawsuit due to an unfortunate event, without coverage, can be the undoing of a business owner. By planning ahead, it is not difficult to be protected from any unfortunate event which may occur.
There are a few items that tend to be the most requested policy coverage needs for small business owners. For example, any business may face a working compensation claim from an employee who has been injured on the job. Trying to cover medical costs without compensation insurance is not feasible for many businesses. Additionally, there are some states that even require it. Professional liability coverage protects many a small business owner too. Fire insurance can also be a smart request.
For the small business owner, protecting assets is key. Planning for the worst is key, even though the chances of calamity are usually very slim. By getting adequate insurance coverage you can be sure that you are building a safety net around all that you have worked so hard to achieve. Even though start up costs can put a financial strain on a new business, do not be tempted to skimp when it comes to insurance. Get the policy that is right for you and for your business needs.
By Robert Watson