Secure Your Business Investments With a Comprehensive Insurance Policy

As a business owner, you invest considerable amounts in purchasing capital and office equipment, property, stock and inventory. All this, involves a fairly big amount of your money. However, business is not just about investments and profits – there are uncertainties and risks in every business, which at times may cause massive loss to your business. To protect your business financially against these risks, it is sensible to purchase an insurance package that covers all kinds of risks involved in your business. Insurance of appropriate value would acts as a protective tool for the purpose.

In this article, we will discuss critical covers that constitute a comprehensive business insurance policy that helps to secure your business investments.

Property is critical
Property, that is the building/condo where your business is housed and the contents (equipment, furniture, electrical fixtures, gadgets, etc.) face risks of different sorts. These include natural and man-made hazards that could damage the building and the contents.

Even if the building is not your own i.e., if you either rented or leased, make sure that the risks are covered. In most cases, building owners/leasers insist on purchasing property insurance. Do not however, ignore if they do not insist. Ensure that you have it to make your business secure.

Business interruption
Certain situations like fire accidents, natural calamities may damage your business premises or equipment and force you to shut business operations temporarily, to facilitate repairs and to set things right. There is, thus, loss of income during the period. However, there are expenses that are mandatory; for instance, building rents and utility tariffs. Therefore, see that your insurance covers business interruption as well.

Insure your inventory
Inventory includes the stocks of goods – finished and non-finished, inputs (raw materials, etc.) for your business. Inventory is the life-blood of your business and thus, signifies its health. You invest considerably to acquire them. Therefore it is important to protect them against the risks of damage.

Protect your equipment and machinery
The equipment and machinery are productivity enhancing tools for your business. In most cases they alone can make your business run. Thus, they are indispensable. Above all, you pay heavy amounts for their purchase and maintenance. Thus, protecting equipment and machinery by purchasing insurance that provides enough cover for them will be a smart business choice.

Professional indemnity
If your business involves providing service to your clients as it is in the case of chartered accountants, engineers, architects, consultants and others, there are fair chances of getting exposed to a wide range of claims.

You may experience claims of compensation for errors, omission, and loss of data. The risks in terms of their likelihood and severity (in terms of claims for compensation, legal procedure) are daunting. Therefore be sensible enough to cover the risk by including professional indemnity insurance to the extent of your business’ needs.

Liability claims
Your business is also at risk of facing diverse liability claims. Such claims may come from your employees as well as others including the public, vendors and customers. If it is really a case, you cannot cope up the ensuing legal battle. The claims of compensation because of liability are likely to exhaust your finances and cripple your business.

As for employees’ liability, you need to purchase workers compensation insurance. It protects your business against risks of liability because of injury to employee/s while on job.

To cover risk of such liability because of bodily injury to others, in your business premises or elsewhere, public liability insurance will come to your rescue.

Regardless of the size of your business – small, medium or large, purchase a comprehensive insurance package as per specific needs of your business and rest assured.

3 Common Mistakes Business Owners Make That Devalue Their Business

As a business owner, you have your eyes on many balls at one time. You are running the business, but you are also likely doing some sales, managing your employees, maybe doing bookkeeping or even the cleaning. On a daily basis you are putting out fires and still trying to be strategic about your business.

It is not easy to do it all, as you know. This why so many business owners forget that their number one job is to run and grow the business. This is a task that only they can do and so they must make time for this critical and import task.

Often, because owners forget to make time for this takes, they make common mistakes that over a long period of time devalues the business. Here are the 3 most common mistakes.

1. Not having a plan. By far this is the most common mistake. It is the business owner that is too busy to run their business. They jump from one fire to another letting the business run them. Often they wake up one day and realize they are burned out and want to leave the business. Never realizing they never really took control of the business and built it for success.

2. Not detailing the plan with specifics. If a business owner does have a plan, then the second most common mistake is not making the plan detailed enough. For example, the plan might be to grow the business by 10%, but the plan will lack a strategy to do that. It is almost like because the owner said it will happen, so it will happen with no really strategy for it. This rarely works. The more detailed the plan with specifics the likely you will achieve the goal.

3. Not following the plan. If the plan is detailed and specific, then the next common mistake is not sticking to the plan. It is common to have a plan, but then following it is a step that often gets missed.

Without having a detailed plan and following the plan, you are drastically devaluing your business.

A small business owner was a devastated to learn her business was only worth the value of its equipment because she had minimized the tax liability and it was showing no profit. If she had met with an exit planning professional years earlier should would have had a detailed plan to maximize the value of her business and instead of selling for $35,000 she might be selling for $350,000.

Because many business owners don’t think about their exit strategy, they often devalue their own business by the way they run it.