6 By Bill Velin Your business faces plenty of threats in today’s environment – from fire to fraud, dishonest employees to discontented utility com- panies. And yet for nearly every peril out there, some insurance company somewhere is willing to provide insur- ance protection for that peril. This, of course, creates a dilemma for business owners - you can go broke keeping your company secure. Insurance purchases can be driven by exaggerated fears – par- ticularly the fear of extended litigation. So before shopping for insurance, inves- tigate what perils companies in your industry are most likely to face and which could threaten the survival of your business. The best way to do this, of course, is to search out an agent that is familiar with your industry. An agent that specializes in insuring your industry will not only have the knowledge of which perils are the most prevalent to your industry, but will also represent var- ious insurance companies that specialize in insuring those perils. A knowledge- able insurance agent will be able to walk you through some of the most common types of coverage. You probably won’t need all of them, and some you will already have. Even if you think you are covered though, you may be mistaken. Companies much larger than yours have argued with their insurers only to come up empty-handed. A good agent will save you from the arduous task of understanding the language of the policy and explain to you what is covered and what is not. Ÿ PROPERTY INSURANCE – This provides coverage for buildings and their contents, such as furniture, fix- tures, equipment, and inventory. Some of the coverages everyone needs are as follows: Companies with little invested in actual premises and little inven- tory can sometimes do without this coverage. For most other busi- nesses, property insurance is essential, and inevitably required for financing. Be aware that basic policies may exclude certain perils and limit certain claims. For instance, losses from water, earth- quakes, and utility failures are often excluded unless you pur- chase a separate rider adding back these coverages. Ÿ GENERAL LIABILITY – This is less common than property insur- ance but arguably much more Ÿ WORKERS COMPENSATION – This is required virtually every- where. For injuries to employees that occur on the job, workers compensa- tion covers medical expenses, lost important because a claim for a seri- ous injury could easily wipe you out. Liability insurance (also known as “casualty” insurance) covers any injury or damage that your company or product might cause to other peo- ple, their reputation, or their prop- erty. All companies with premises that other people can enter (custom- ers, suppliers, etc.) or that manufac- ture a product that that could hurt someone or damage property of oth- ers should buy liability insurance. Most standard liability policies pro- vide $1,000,000 of coverage per claim (occurrence). However, you may be required to have higher lia- bility limits to do business with cer- tain companies, and that extra cover- age is typically purchased under an UMBRELLA or EXCESS LIABIL- ITY policy. Insurers price liability insurance based on a variety of expo- sures - revenue, payroll, and square footage of your premises are some of the common rating exposures. “Before shopping for insurance, investigate what perils companies in your industry are most likely to face and which could threaten the survival of your business.” How to do it How to Buy the How to Buy the Proper Business Proper Business Insurance Insurance How to Buy the Proper Business Insurance