Review your business
insurance. Read the policy. Yes, this can be tedious but it can
save you from some nasty surprises later on. Review your coverage
annually. Look closely for items excluded from coverage. Most standard policies do not cover flood, earthquake or even hurricanes
(in some coastal areas). Some policies exclude damage or injury caused
by terrorism.
Do you have adequate property insurance?
Recalculate possible replacement costs per square foot and compare that to your
policy limits. For example, a 4,000 square foot building with $50 per square
foot replacement cost should be insured for $200,000. Be sure to check local building costs per square foot-- costs
vary by region and building type.
Equipment over a specific dollar cost may
have to be listed on your equipment/vehicles page to be covered. For example, a
backhoe worth $15,000 may have to be listed to be covered--check with your insurance agent
to find out. Document the value and location of fixed assets. The easiest
way to do this is within your existing fixed asset system.
Do you need business interruption
insurance, earthquake, windstorm or flood coverage?
Keep in mind that most new flood insurance policies have a mandatory 30 day
waiting period before the coverage is in effect and insurers will not write
hurricane coverage if a storm is already approaching.