Tuesday, July 20, 2010

Insuring your business

 Meeting the insurance needs of your business is an essential task in protecting your company and its assets. Whether your business is a fast-paced one that keeps you running about all day long or a more leisurely one that allows you time for an extra coffee break, its insurance needs must be maintained in order to provide that element of security that every company needs in order to survive unexpected catastrophes.

Additionally, businesses need to look to the individual aspects of their company when obtaining business insurance. Each critical facet should be included under the terms of the insurance coverage. What should a business owner include when obtaining insurance to protect his company and all of its assets?
Replacement cost of the business structure

Every business insurance policy should include a provision for the replacement cost of the business structures. This should include not only the primary building but also any subsidiary buildings as well. This might include garages, sheds, or other storage facilities.

Not only should business owners consider what the existing business structures might cost to replace, but they should also look into changes in business and zoning codes that would affect this replacement.

Even though the current structure might be grandfathered in and not be required to incorporate these changes in the business and zoning codes, any replacement buildings will be subject to them. This could increase the expected replacement cost of the business buildings.
Replacement cost of business equipment

The replacement cost of business equipment should be included in every business insurance policy. Business equipment is a valuable asset that should be protected in order to protect the sustainability of the business.

Each time business owners renew the insurance policy, they should review the listed value for their business equipment to verify that it accurately reflects its current replacement value. Tools should be included within this category.
Replacement cost of inventory

The replacement cost of inventory might fluctuate for specific types of business companies. This factor should be reflected in the insurance policy. In particular, businesses that experience wide fluctuations in inventory such as during peak periods of purchasing in anticipation of peak periods of sales should adjust the replacement cost accordingly.
Replacement cost of business furniture, fixtures, etc.

All of the contents of your business buildings should be included on the insurance policy. Therefore, the replacement costs of business furniture, fixtures, office supplies, etc should all be included in the listed amount on the business insurance policy.
Replacement cost of electronic equipment

Due to the higher value of replacement, certain types of electronic equipment such as computers require separate provisions on insurance policies. Additionally, these provisions might also require certain limitations or specifications such as required practices when it comes to electronic equipment.

In particular, proper covers might be required in order to protect such equipment from certain types of damage such as water damage should the ceiling sprinklers become triggered. Additionally, some insurance companies require such equipment to be kept under lock and key when not in use.
Replacement cost of company vehicles

The replacement cost of company vehicles may require a separate provision on a business insurance policy. This type of cover should include basic coverage for all of the vehicles commissioned by the company.
Replacement cost of lost time/sales

The replacement cost of lost time/sales is a facet of business insurance that all business owners might not choose to obtain. This type of insurance coverage protects against breakdowns involving electrical, mechanical, and pressure problems. Some companies might experience a prolonged loss of income should such problems arise and this type of insurance coverage could prove to be beneficial.
Liabilty coverage

Today's society has proven to be quite litigious in nature making this type of coverage a necessity for many business owners. Protecting the company against potential lawsuits could be instrumental in its survival. In particular, business owners should check into product liability.
Insurance coverage for natural disasters

In many instances, insurance protection against natural disasters is not automatically included in a business insurance policy. Instead, it is a separate provision that must be specifically requested and paid for.

If the business is located in an area that is prone to natural disasters, obtaining this type of insurance cover could be necessary and beneficial. An umbrella policy that provides cover for lost income and sales in another option that might prove to be beneficial.
Life insurance for business employees

In addition to offering life insurance to the employees of the company, business owners might want to consider obtaining life insurance on key employees who are critical to the functioning of the company.

After all, the continuity of the every day transactions within the business is essential to its continued growth and profitability.
Scure http://www.e-wisdom.com/


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