If you are like most small business owners, your company, next to your family, is your pride and joy. It is also the major source of financial security for you and your family — your greatest asset. As a result, your business is 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.
As a long-time insurance agent, I have seen lots of businesses face unexpected disasters. In this blog, I will discuss five critical things you can do to protect your Tennessee small business from potential disasters.
1. Adequate Insurance Coverage
Insurance provides a financial net for your company against potential disasters and hazards. You need to make sure you have adequate insurance coverage. Let’s say your Tri-Cities business was broken into and gutted by thieves. Would your insurance policy cover these losses? What about if a computer virus corrupted some of your client lists? 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.
2. Design a Disaster Recovery Plan
Insurance can’t cover everything, and all coverages have limitations. So you need a plan that allows you to get the company back up and running as quickly as possible. If you don’t feel you have the expertise to design this plan, there are plenty of professionals out there who can do it for you.
At a minimum, this plan should include duplicate records of both computerized and written documents, an emergency response plan, lists of important phone numbers and addresses (keep these off-premises), and a communications strategy to prevent the loss of clients.
3. Risk Analysis
Have a business insurance specialist conduct a risk analysis of your company and its operations. No two companies are the same–even two that are in the same business. You need an expert to assess your company and the specific risks it faces. They can then put together a comprehensive insurance plan to protect you.
4. 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 don’t want an agent who is an employee of an insurance company. You want someone who will work for YOU. Independent agents have access to a variety of insurance companies and programs, and can compare price and coverage options. An independent agent will be able to provide you with the most comprehensive coverage, possibly working with several companies which each provide a piece.
5. Find an Agent who Knows Small Business Insurance
Don’t trust the future of your business to someone who does not have a comprehensive understanding of the special problems small business people like you face. Insurance is a huge industry, and nobody can specialize in all of it. In fact, a professional independent agent can specialize in only a few niches and fully understand them.
For example, I have spent years studying the small business insurance market in Tennessee. I know which companies offer the best coverage and service, and which companies cover specialized needs. Not every agent has this knowledge, just as other team members may have more knowledge than me when it comes to other areas of insurance. Don’t trust your business to someone who may not know what they are talking about.
Get Coverage Today
Veritas Risk Management is a local, independent insurance agency in East Tennessee. If you have any questions about how to protect your Tennessee small business, or would like a free insurance quote, give our Johnson City office a call at (423) 292-4142. One of our agents would be happy to work with you to help you find the coverage you need.
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