How Much Insurance a Small Business Owner Needs: Even though big disasters can cause major damage, so can minor disasters like the neighborhood power outage, burst pipes or floods from the neighbor. These minor disasters can lead to a business shutting down for a couple of hours or days, which could force an under-insured business to close down for good.
How Much Insurance a Small Business Owner Needs
The Small Business Administration has approved more than $132 million in disaster loans to more than 1,400 businesses to cover under-insured losses. It is essential to protect your business investment with enough insurance to help with the disaster and quickly resume operations.
Below are a few action items taken from the Small Business Administration’s blog to consider when filling out the insurance portion of your business continuity plan:
- Review Your Insurance Coverage.
- Consider Business Owner’s Insurance.
- Consider Flood Insurance. According to the U.S. Geological Survey, floods are the leading cause of natural disaster property losses. Business owners, particularly those running home-based businesses, should consider getting coverage from the National Flood Insurance Program. Most homeowners’ insurance policies don’t cover flood losses.
- Up-keep Inventory sheets of what you own.
It is imperative to have a plan in place to restore your business to its pre-disaster condition after the fact. Yes it may take some up-front cash to maintain the right insurance policies, however in the long run it will make a difference if ever a disaster occurs. Like the old saying states “better safe, than sorry!” Call Boyer Law Firm today to evaluate your business’s insurance needs.
