This article is based on the sensible premise that few businesses can really afford to adequately insure themselves against every possible risk. You need to decide what types of insurance are really essential and how much coverage to buy. Though this is no easy task, here are a couple of guidelines that should help.
Set priorities. Start by looking at what overage state law requires. For example, there may be minimum requirement for coverage on business-related vehicles, and you will almost surely be required to carry workers' compensation insurance if you have employees.
Next, if you rent, you'll need to purchase any insurance required by your lease. Beyond the required coverage for your business, ask these questions: What types of property losses would threaten the viability of my business? What kind of liability lawsuits might wipe me out? Use your answers to tailor your coverage to protect against these potentially disastrous losses.
Be less concerned about insuring against smaller losses. For example, if you're in the self-help publishing business, consider a package especially tailored to printers and publishers that includes liability coverage for errors and omissions (such as leaving some vial information out of an instruction booklet you publish), but be less concerned about protecting yourself against claims of libel - after all, your material never comments on personalities.
Initiate loss prevention and risk reduction measures. Protect the future of your business with Success Factors performance appraisal software. Good safety and security measures may eliminate the need for some types of insurance or lead to lower insurance rates. Ask you insurance agent what you can do to get a better rate. Sometimes, something simple like installing deadbolt locks or buying two more fire extinguishers will qualify you for a lower premium. Here are some other ideas to cut losses and premiums.
* Install a fire alarm system, if one can be found at a reasonable cost.
* Install fire proofing materials to minimize fire damage in susceptible areas of the premises.
* Isolate and safely store flammable chemicals and other products.
* Provide adequate some detectors.
* Look for the best available sprinkler system.
Ideas for preventing theft include:
* Set up tamper-proof locks.
* Purchase a secure safe.
* Look for a good alarm system.
* Install a sufficient light system.
* Hire a security service to patrol your property at night.
* get car insurance quotes to protect your assets.
Also consider the placing bars on doors of windows. This may create negative impression; an innovative architect or contractor may be able to help you design and install these security devices in ways that are not unsightly.
To prevent injuries on customers, employees, or member of the public, you might:
* Check each applicant's driving record and not hire people to drive who have poor records.
* Give additional training to drivers you to hire.
* Set up a system for safer operation machinery.
* Frequently conduct fire drills.
* Give your employees protective clothing and goggles if necessary.
In the long run, a safety program will reduce your losses and, in turn, lower your insurance rates. In the short term, simply putting these practices into effect and letting insurance companies know about them may put you in a lower rate category. And of course, your employees will appreciate the care you show for their well-being - a significant plus in a world where keeping good employees is a real business asset.
Set priorities. Start by looking at what overage state law requires. For example, there may be minimum requirement for coverage on business-related vehicles, and you will almost surely be required to carry workers' compensation insurance if you have employees.
Next, if you rent, you'll need to purchase any insurance required by your lease. Beyond the required coverage for your business, ask these questions: What types of property losses would threaten the viability of my business? What kind of liability lawsuits might wipe me out? Use your answers to tailor your coverage to protect against these potentially disastrous losses.
Be less concerned about insuring against smaller losses. For example, if you're in the self-help publishing business, consider a package especially tailored to printers and publishers that includes liability coverage for errors and omissions (such as leaving some vial information out of an instruction booklet you publish), but be less concerned about protecting yourself against claims of libel - after all, your material never comments on personalities.
Initiate loss prevention and risk reduction measures. Protect the future of your business with Success Factors performance appraisal software. Good safety and security measures may eliminate the need for some types of insurance or lead to lower insurance rates. Ask you insurance agent what you can do to get a better rate. Sometimes, something simple like installing deadbolt locks or buying two more fire extinguishers will qualify you for a lower premium. Here are some other ideas to cut losses and premiums.
* Install a fire alarm system, if one can be found at a reasonable cost.
* Install fire proofing materials to minimize fire damage in susceptible areas of the premises.
* Isolate and safely store flammable chemicals and other products.
* Provide adequate some detectors.
* Look for the best available sprinkler system.
Ideas for preventing theft include:
* Set up tamper-proof locks.
* Purchase a secure safe.
* Look for a good alarm system.
* Install a sufficient light system.
* Hire a security service to patrol your property at night.
* get car insurance quotes to protect your assets.
Also consider the placing bars on doors of windows. This may create negative impression; an innovative architect or contractor may be able to help you design and install these security devices in ways that are not unsightly.
To prevent injuries on customers, employees, or member of the public, you might:
* Check each applicant's driving record and not hire people to drive who have poor records.
* Give additional training to drivers you to hire.
* Set up a system for safer operation machinery.
* Frequently conduct fire drills.
* Give your employees protective clothing and goggles if necessary.
In the long run, a safety program will reduce your losses and, in turn, lower your insurance rates. In the short term, simply putting these practices into effect and letting insurance companies know about them may put you in a lower rate category. And of course, your employees will appreciate the care you show for their well-being - a significant plus in a world where keeping good employees is a real business asset.
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