Any new or existing business needs to factor the costs of business insurance into the planning process – it’s a vital mechanism for managing risks and planning for adversity. Some coverages are optional while others, like workers’ comp, are mandated by law.
There’s a great primer on business insurance that appeared in the Boston Globe this week, sponsored by Rockland Trust and written by Wayne Taylor: First rule of insurance: don’t run the risk of being unprotected. Taylor notes: “For a small or medium-sized business, not being protected for uncovered losses could mean the difference between survival and failure.”
The article offers a good overview of business insurance basics, as well as coverages that are unique to specific industries.
We’re delighted that the article includes commentary from one of our Renaissance Alliance members:
“Many small businesses have a unique set of risk exposures that larger businesses don’t always have,” said W. Jeffrey Helm, president and founder of Atlantic Advisors Insurance Agency, Inc., in Norwell. “Often the small business owner is the one who is emptying the waste baskets and booting up the computers in the morning, as well as making sales calls and strategic operating decisions.
“What happens if this key player gets injured or falls ill? The company may not yet have a lot of savings in the bank, nor access to a large line of credit. Having disability coverage, for example, or business overhead expense insurance can help provide a temporary income stream so that the business continues to operate and meet its financial obligations.”
The article suggest brushing up on “the language of insurance” and finding professional guidance. Here are two excellent resources learning more about insurance.
- The National Association of Insurance Commissioners (NAIC)- Small Business Insurance 101
- Insurance Information Institute – Business Insurance
As for a business insurance advisor – if your business is in New England, you can’t do better than a Renaissance Alliance independent insurance agency member – fine one near you!