What You as a Business owner Must Do to Shield Your Business from Financial Disaster!
By Bruce P. Thompson, CIC, ARM, AAI,
Vice President, Sampson Insurance Agency, LLC
If you are like most people in business, your business is, next to your family, your pride and joy. It is also the major source of financial security for you and your family — your greatest asset.
Potential Disasters Are Always Present
Your business is also, unfortunately, your greatest liability. Your business faces no shortage of potential disasters: fire, flooding, theft, equipment breakdown, loss of key financial records, lawsuits from disgruntled customers and possibly former employees and probably disasters you haven’t even considered.
What if Disaster Strikes — Are You Covered?
First, start by imagining a disaster. One day, you get to work — the first one there as usual. You open the door and find you have been robbed . .the property you need has been stolen.
By the time your employees arrive for work, you have realized you are living a worst-case scenario. The business has been gutted by thieves, and there’s no way your business can be operational any time soon.
Insurance Program Must Cover Worst Case
Would your insurance program cover the revenues you would lose? Would it help you pay your bills in the absence of your usual revenue stream? Would it reimburse you for the expenses you incur in getting your business back up to speed?
You need insurance to cover anything that can shut down your business, or cause it to operate at less than full capacity. Anything less than that is not adequate.
Peace of Mind in Three Easy Steps
1. Design a disaster recovery plan for your business.
Insurance can’t cover everything, and all coverages have limitations. So you need a plan that allows you to open the doors as quickly as possible.
For this recovery plan to be effective, you need to do the following:
- Make duplicate records of both computerized and written documents.
- Identify your company’s critical business activities and the resources needed to support them.
- Plan for the worst-case scenario. Do research before a disaster strikes equipment and food supplies, as well as alternative contractors.
- Set up an emergency response plan and train your employees how to carry it out. Consider alternative power sources and communication systems, and supplies such as first-aid kits and flashlights.
- Compile lists of important phone numbers and addresses, including those of local and state emergency management agencies, suppliers, realtors, financial institutions, your insurance agent and claim representatives for your insurance companies, as well as phone numbers and addresses for your staff. These lists should be keep off-premises.
- Implement a communications strategy to prevent the loss of customers. The strategy should enable your customers to know when you will be back in business.
2. Have a business insurance specialist conduct a risk analysis of your restaurant and its operations. No two businesses are the same, even two that are in the same industry. You have your own inventory, your own equipment, your own staff.
3. Use an independent insurance agent.
As a business owner, you want as many options as there are available for your insurance program. As such, you want someone who will work for YOU. You want someone who has access to a variety of insurance companies, a variety of programs. You want someone who can compare price and coverage options. Someone who can get the most comprehensive coverage for you, possibly with several insurers that will each provide a piece of your program. There’s only one type of insurance agent who can do all of this for you. An independent agent.
Independent Agents know:
- Which insurers offer the most comprehensive coverage and the best premiums for small businesses.
- Which insurance companies to turn to for a businesses specialized coverage needs.
- And which insurers provide the best claim service.
No Charge, No Obligation
I will give you this information for FREE. No charge. No obligation. I do this because I’ve built my business on my reputation.
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