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.