Insurance for Your Small Business
Obtaining the Proper Insurance
You should undertake a review to determine the acceptable level of loss your business is willing to tolerate. This review should include everything from the possible loss of your business property (for example, due to a fire) to your general liability (as a result of someone slipping on your floor). One recommended method of doing this involves three steps:
The following risk categorization model can be used to help you determine your alternatives.
As you can see, insurance is generally needed to protect against severe losses. In the other instances, you can take other actions to either avoid (where losses are so frequent and severe that they cannot be tolerated), retain (where losses occur infrequently or are minor and are considered part of the cost of doing business), or reduce the risk (where you can use loss prevention measures such as mirrors, closed circuit televisions, etc.).
Take action to implement and monitor solutions: use the above model to help you choose alternatives; then track your losses over a period of time. Go back and reevaluate. If your level of losses is still too high, then you will have to go back through the prioritizing process.
Once you have determined what risks you will have to cover with insurance, your financial professional should be able to help you decide how much coverage you need. Of course your decision will be influenced by the cost of the insurance and the amount of money you have available to spend on insurance.
Find Someone To Help
Your Financial Checklist
Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC.,
Member FINRA / SIPC. Infinex and Friend Bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.