As a small business owner, you may feel you do not have enough time for risk management. Yet you are ready or not, the risk is always present and can give rise to liability. The fact remains that preventive measures and an insurance liability could protect your business and your employees against costly litigation.
As you study the options, take time to understand why your business may need insurance. You might ask:
• What could go wrong?
• How to prevent this?
• What if this happens?
• Where to find the money to remedy the situation?
Review your operations and your institution. You will perhaps see a number of dangers. Address these potential problems and eliminate as many hazards as possible are part of a plan for effective risk management. You can then follow the plan and present it to any prospective insurer. The risks and dangers may change over time, so revise your plan regularly to keep it updated.
The next step is to choose an agent or a commercial insurance broker. Professionals who know your company or your industry may offer you insurance at the best cost-effectiveness that best meets your specific needs. Ask yourself what losses could interrupt the operation of your business. Plan to protect
yourself against such losses. The cause of these losses could be due to:
• damage to your facility;
• injuries or accidents suffered by customers;
• of defective products or services;
• production time lost due to a prolonged closure.
Extent of risks may vary. You might not be able to avoid the fire next door or a broken water main, but you could avoid damage to important objects inside your facility through planning. In the same vein, to avoid accidents, it would be helpful to regularly inspect the sources of hazards, such as smooth surfaces or poor lighting.
Prevention can save you considerable time and save a lot of money, but there is always the possibility that an unexpected event occurs. Make sure you have adequate insurance for your small business and be ready to face the unexpected.