Bullet-Proof Your Small Business with Insurance Planning

Written by: Jon W. Ulin, CFP, Advanced Financial Advisor, Ameriprise
Financial, Inc.

Your business represents a substantial investment of your ideas, time, and money (in addition to your sweat and elbow grease). Because your business faces a variety of risks (e.g., property damage, theft, personal injury claims, and natural disasters), you'll want to protect your investment (and
family) with various types of business insurance strategies for reasons noted below.
1. To protect against risks and perils to property Property and casualty insurance protects against the loss, damage, or theft of physical assets such as buildings and equipment which could result in an interruption of the business and maybe even a complete shutdown. The right combination of insurance coverage can mean the difference between a temporary shutdown or a permanent closure.
2. To protect against liability claims
Through contact with the public and through personal injuries suffered on your business premises, your company could face liability claims and lawsuits.
3. To protect human assets
Your business can protect itself against the loss of human assets, such as the loss of services of key employees through the use of company-owned life and disability coverage on key personnel. If a covered owner or employee dies or becomes disabled, the policy provides payments to cover the loss of income generated by that person. Funds provided by the policy can help your business continue operations and remain competitive.
4. To attract and retain employees
Insurance can be used to help your business attract and retain quality employees. Group coverage such as life, health, disability, and long-term care insurance can be offered as part of your company's employee benefits package.
5. Because facility coverage may be required under the terms of your contract If you rent or lease your business facility, the contract with your landlord probably requires that your business carry its own insurance in addition to worker’s compensation.
6. Because businesses are not included in homeowners coverage Businesses are specifically excluded from coverage under a homeowners policy. If you're involved in a business activity in your home, your homeowners policy will not cover you for liability or medical payment issues. This means that your policy will not reimburse you for medical care required by a client who falls off his chair in your home office when you tell him how much tax he owes.


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The office of Jon W. Ulin, CFP, Advanced Financial Advisor, Ameriprise
Financial, Inc. is located in Boca Raton