Monday, October 29, 2012

15 Minutes Won't Cut It

Hurricane Sandy is pounding the East coast and forecasters are expecting that part of the country to be without power for several days after the storm passes. This is a great time to discuss disaster preparedness. Not a sexy topic, I know. But an important topic if you own a business.
How would a loss of power affect your businesses financial performance? I suspect it would be difficult. During the April 2011 storms and subsequent power outage, many businesses failed, or failed shortly after. We're in the middle of one of the most severe recessions in modern history. Many businesses are in a frail financial position, losing a weeks worth of revenue just might be the straw that broke the camel's back. 

I talk about disaster planning every year about this time. Let's concentrate on physical damage this time. What would you do if the building that houses your corporate offices were destroyed? How would you rebuild your computer systems? What about your employee files? Do you even know the phone number of your insurance agent? Do you have the proper coverage? Now's the time to find out. 

This year, why not review your insurance coverage and confirm that you are properly covered in case of a physical loss. If you have 15 minutes worth of coverage on your business property, you're probably not going to be happy when it's claim time. There's a difference between business coverage and personal coverage. If you have business property, get your coverage from a business insurance provider. You're local personal insurance brand can probably provide some coverage, but it's unlikely to be what you really need.

Sit down with a business lines insurance broker and discuss your needs. Make sure to review your auto coverage for proper limits. A standard auto policy is not going to work if you're using your vehicle for business. You'll discover this when you have an accident and your business laptop is destroyed and your insurance doesn't cover the loss. Don't find this out the hard way. Discuss your business and personal risks with a commercial lines broker and get the proper limits on your personal policies and secure the proper policies for your business needs or get the additional coverage added on to your personal policies.

The point is, you don't really understand your risks if you don't have the conversation with a professional. There are several commercial line insurance brokers in town. I do business with a couple and would be happy to give you a referral if you need one.

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