Insurance
Risk Management
Insurance is about managing your risk, but also about how much can you afford to spend to protect yourself from loss. When you first start out, you have less property to protect. However, as your business grows, your insurance program needs to be flexible to keep up with any changes.
You should not buy insurance on the phone or
online. Your agent must understand your business in order to help you get
the proper coverage at a price that your business can afford. The cheapest policy can be the
most costly if it does not properly protect your business from loss. You need an agent that will
annually review your coverage with you, and adjust it to fit your changing situation. This a
long-term relationship. Safety training, policy and procedure manuals, regular training and
reviews are part of your risk management program, and some carriers offer discounts for these
items.
There are two different types of agencies: Captive Agencies that represent one line or lines approved by that company ( State Farm, Farm Bureau, Allstate, etc) and Independent Agents, who represent many different lines of insurance.
You must be honest with your agent when taking out
coverage. If you are not, this could lead to claims being denied in the future.
Helpful Links
Small Business Liability Insurance