Managing your small business’s insurance and risk is no small feat, but it is incredibly important. Having a properly structured insurance portfolio tailored to your small business needs can save you a significant amount of time and money in the case of unexpected events.
While building the perfect insurance portfolio may seem daunting, we’re going to make it a whole lot easier for you by breaking it down into the four basic risks for which your business needs protection. If you own or operate a business with less than 100 employees, you’re going to want to pay close attention to these four main areas of risk.
1. Business structure
When it comes to assessing your small business’s risk, you’ll want to give careful consideration to your company’s legal structure. If you choose to operate your company as an “individual”, know that any liability you incur throughout your business venture will be yours for life. It might be a better idea to operate as a subchapter S Corporation, C Corporation, or even an LLC. Whichever way you choose to define your business, you should be sure to keep a clear separation between yourself and your company and seek advice from a trusted insurance advisor.
2. Physical assets
It’s safe to assume that your small business will operate with the help of a number of physical assets. Things like buildings, property, inventory, equipment, and vehicles are often necessary to keep your business running. If not properly insured, these assets expose your company to unnecessary risk. While it may be tempting to cut costs by insuring corporate-owned vehicles or property under a personal policy, don’t be fooled. When it comes to your company’s physical assets, purchasing the wrong insurance can be just as risky as foregoing insurance all together!
3. Liability risks
Whether you have 10 employees, 100 employees, or work only with independent contractors, make sure you are protected from liability risks with the correct coverages. Protect your employees and yourself by purchasing the necessary Workers’ Compensation coverage as well as Employment Practices insurance. Having proper liability coverage can be the difference between staying in business or folding. Keep your employees safe by ensuring they’re covered and conducting recurring safety meetings.
4. Human assets
We’ve already mentioned protecting your physical assets, but what about the human assets? As a small business, you likely rely on a number of key individuals to keep things running smoothly. Unfortunately, none of us have the power to predict the future and you never know when tragedy might strike, leaving you and your business devastated by loss. The best thing you can do is be prepared for these kinds of emergencies with the right insurance.
So, there you have it. Just about every form of insurance falls under these four foundational points. But, there is one more important step when it comes to building your small business insurance portfolio, and that’s finding the right insurance representative to help you out! Look for a professional who is willing to place your needs at the forefront to ensure your business is properly protected.
At UWIB, we use our decades of experience and extensive insurance knowledge to help our clients with a variety of risk management needs. If you are looking for help building an insurance portfolio specially tailored to your small business needs, contact one of our agents today.