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What to look for in Insurance,
Few things in life are as risky as launching and running your
own small business, or expanding your existing business. There
is always the possibility that you could be involved in a lawsuit
brought by an in-dividual who has suffered an injury and will
seek to attribute the injury to negligence on your part.
Major parts of the risk of any business are liability to others
and the loss of critical equipment. Either incident could cause
a loss of income that could force you to close you doors. Insurance
allows you to transfer these risks to the insurance company--offering
you protection and security!
My clients often ask me how soon should I purchase insurance?"
Insurance is needed from day one. If you suffer a loss and have
no coverage, no insurance agent will be able to help. Also, certain
laws or leases may require insurance before you are able to start
operating.
Generally, you will need to have three types of insurance: Professional
liability, General liability, and Property coverage.
Professional Liability commonly known as malpractice liability--is
bodily injury and/or property dam-age arising out of any personal
or professional service you perform.
General Liability will provide coverage for any damages for which
you are held legally liable as a re-sult of bodily injury or property
damage, including any suit, both for defense costs and any settlement.
General Liability claims can result from such things as someone
tripping on a carpet or bumping their head.
Your coverage must include defense costs. Often settlements are
not paid or are very small, but the defense costs could be thousands.
Your insurance must provide you with protection from the start
of the claim.
Your liability insurance policy should also include products liability
coverage, which in some cases could be secondary to the manufacturers'
coverage.
Property Coverage will provide protection from such perils as
fire, lightning, windstorm, water damage, vandalism, and theft.
Perils generally not covered would be earthquake and flood. Your
property includes your building (if you own it), your contents
(including equipment, inventory, and betterment's and improvements
made to the premises). A careful inventory of your equipment and
contents will provide you with the amount of coverage needed to
properly protect your business.
Property Coverage can be written on either an "actual cash
value" or "replacement cost" basis. We recommend
replacement cost in order to have your property replaced at today's'
cost without depreciation.
Knowledge is Your Best Protection. The insurance agent you use
can be as important as the coverage you buy. You will want to
deal with a licensed insurance professional who is qualified in
their field, knows your industry, and who represents "A"
rated insurance companies
Do Not Be Afraid to Ask Questions about the policy you are buying,
the qualifications of the agency placing the coverage, and the
rating of the company writing the policy. Be aware that often
a lower price does not determine the best deal. As with any other
major purchase you make, be sure to be an informed consumer. If
you do not know the questions to ask, speak with other professionals
in your field, seek in-formation from trade associations and read
trade publications.
Also, keep your insurance up to date. Only you know when you are
changing locations, adding services or purchasing new equipment.
In order to protect yourself, you must notify your agent of these
changes.
Mary Lynne Blaesser, CIC is a certified insurance counselor for
Marine Agency Corp., specializing in the beauty trades industry.
For more information or a free no-obligation insurance consultation
contact Mary Lynne Blaesser at the Marine Agency Corp. in Maplewood,
New Jersey. Call 1-800-763-4775 ext. 15, email mlblaesser@marineagency.com
or fax 973-763-1635.
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