With the economy picking up, small businesses can rejoice as opportunities arise for them. But that’s only for those that are well prepared. Being a small business owner, you should not just be worried about capital improvements and increasing quality staff, but also about getting your business insurance policy in place.
Ask yourself – don’t you adjust your insurance with changing circumstances in your personal life? Of course you do. You have to do it to keep up your successful pace. You would hire a specialized drunk driving lawyer if you get injured by a drunk driver, correct? You would because you wouldn’t want to lose the money you deserve. So why have different rules for your startup or small business?
When circumstances change for your business, you have to adjust your insurance policy so that it reflects these changes. Here’s how you do it:
#1: Protect Against Hackers and Cyber Fraud
Small businesses are easier and more vulnerable targets for hackers and fraudsters. It’s important to seek protection. Your computers, network and devices have sensitive data such as banking info, customer records, employee data, etc. This is the kind of data that’s tempting to those scammers. Unfortunately, only some Business Owners Policy products offer proper coverage for business data. You should look for an insurance product that helps you get back into action if your business halts due to hacking or data loss, and at the same time covers expensive lawsuits.
#2: Take Stock of Your Supply Chain/Inventory
When taking stock, you need to consider your inventory’s damageability along with its proper protection and storage. If your business is running good then there are chances that you have much bigger needs now. This is when you should consult a good insurance agent. But there are times when it is not up to you. There could be unfortunate and unpredictable instances such as one of your main suppliers suffering an accidental warehouse fire or going out of business. This is why you need to look for insurance products that actually replace the profits that you would have lost with the loss of your formal supplier.
#3: Review Your Business Owner’s Policy
Just the way your life insurance policy should reflect your life’s current state, it’s important that your business owner’s policy or BOP reflects the current nature of your company. Success in business means scaling up by adding more employees and buying new equipment. Your BOP may not be keeping up with these changes, which is why you should review it and make sure it does.
Running a small business and making it successful is no easy task. It takes time, effort and dedication. Working hard to position your business for optimal growth and to keep up with the economic changes is great. But if you push insurance to the bottom of your “to do” list then all the hard work that you put in to keep pace with the changing times gets threatened. So use the tips we discussed above and prepare for growth the safe way.