Business owners need to think through their insurance needs properly. A meeting with an agent should be both productive and relevant. Make sure that all of the basics are covered and then think about ‘what if’ scenarios.
For example, we had an employee steal over $180,000 worth of brass. This was done over a period of months, a little bit at a time. By the time we discovered what was happening and began the process of prosecuting him and recovering our losses, the damage had already been done. Unfortunately, since he chose to pilfer finished goods, our insurance coverage, although adequate, only covered the cost of raw materials and not our labor.
Attempting to save money here and there is the wrong way to go about creating insurance coverage. Instead make sure that you have viable protection that covers you in the event that something real happens.
Explore ‘loss of business’ insurance to make sure you are covered in the event that something happens to prevent you from opening your doors. As far-fetched as you think this may sound, there are a multitude of factors that can cause this.
-Eric Priceman, Victory
