Do I Have Enough Business Coverage?
Business Insurance: How Do I Know If I Have Enough Coverage? Family businesses are the engine of the American economy. So much so that, according to the US Bureau of the Census, about 90% of the country’s businesses are family businesses. Of these, the small family business contributes 54% of the GDP of the entire US private sector, in addition to employing 59% of the workforce outside the public sector. Despite its deserved importance, 75% of small family companies are underinsured.
What is worrying about the above data is that it does not mean that they have vast financial reserves that guarantee them a certain autonomy to solve potential future risks. On the contrary, according to Goldman Sachs, 44% lack three months of reserves, and in the event of a forced interruption of their activity, it could mean the end of the project.
To find out if your company is sufficiently insured, you should evaluate the potential risks that your business could face. For example, what would happen if you lose your main supplier, how to survive if it is devastated by a hurricane, what happens if a key employee leaves or if the premises where the company operates are flooded, etc. The next step is to review your insurance policies and determine if all of these potential risks are covered or if you have contingency plans to address them. It is essential to know each of the exclusions of the contract. With all of that information in hand, you should sit down with a commercial insurance specialist and together create an insurance package that truly meets the needs of your business. Business Insurance: How Do I Know If I Have Enough Coverage?
When looking at coverage, they should not only look at the uninsured aspects of the business, which is the bottom line but also find any redundant or unnecessary insurance that your company is paying for.