Without adequate insurance, any casualty or other catastrophic event could wipe you out and shut you down.
Be sure to maintain the following types of coverage:
- Property and liability coverage, commonly within a single business owner’s policy (BOP);
- Workers’ compensation and unemployment insurance for staff—the law requires it;
- Vehicle coverage—the law requires insurance for cars and trucks on the road;
- Special coverage for home-based businesses—don’t assume your homeowner’s policy will cover losses to inventory and business equipment in your home; get a separate BOP if necessary.
Areas to trim ...
You can reduce the cost of insurance by:
~ Shopping around for the best deals—compare rates from several companies for similar coverage;
~ Increasing your deductibles to reduce the premiums—view insurance as something for catastrophe and pay out of pocket for the little mishaps;
~ Trimming health coverage if you’re providing it (or shift more of the cost to employees if necessary).
Insure U for Small Business, a website from the National Association of Insurance Commissioners, provides information and tips to small companies and home-based businesses. For example, Insure U advises that you review your insurance coverage annually to make sure it meets your needs and suits your pocketbook.