Happy (almost) 2012 Everyone! As we begin the New Year, like every other company out there, we take stock in what we accomplished during the last year and evaluate if we are ready for the new year to come. As you look at your company and plan for future success, I want to you to take some time to evaluate your business risks and prepare for the unexpected.
A storm is approaching, your business is at risk, do you have the right insurance? Don’t leave it to chance. Unless you take the proper steps to protect your assets you run the risk of a storm or natural disaster killing off the lifeblood of your business – your income.
Most individuals and businesses think about Property insurance in broad terms, but as you prepare your business for the future it is important to know what insurance companies look at when it comes to your property?
- Building – this is “real property.” Anything permanently attached to the ground. The building, the roof, permanently attached equipment, etc…
- Business Personal Property – this includes all of the following:
- Furniture
- Fixtures
- Stock
- Equipment- Business Income – Any expenses that would continue even after a loss, plus your net profit
- Extra Expense – Any costs that you would incur to quickly get your facility back up and operational
As you prepare for 2012, here are a few items to consider when it comes to your property insurance:
- What happens if you have a partial loss to your building, but the local government code requires that you tear down the whole building and rebuild, are you covered?
- What if you occupy an old or historic building? You may be required by local code to rebuild with like kind and quality; that is great for the city, but what if you only need the function of the building?
- If you are a tenant, have you installed items in the building that have value to you, but not to the building owner? Do you want to be compensated for the loss of the additions and alterations?
- Manufacturers and Retailers: How will your stock be valued at time of loss? Do you carry a large amount of completed products? Are you going to be paid the cost of the raw goods, the completed/wholesale price or the selling price? Does how the property is valued have a potential impact on your bottom line?
- How long will it take you to rebuild, and bring back any lost customers? Can you afford to lose any key people? Do you want to retain all of your employees and how are you going to pay for them with the loss of revenue?
- Do you have a business that requires you to reopen immediately in the event of a loss? How much money will it take after a loss to bring your business back up at an alternative location?
These are just some of the items to consider when planning your Property Insurance program. If you want to know more about the types of insurance coverage you should be looking at for your business, read our post “Is your business prepared for a disaster? (Part 1).
So, as you evaluate your business and its preparedness for future success in 2012, don’t forget to look at your business risks and especially your property insurance. Stay tuned…we have more to come on “Is your business prepared for a disaster?”
Have a happy, safe, and prosperous 2012!
