Here in Kentucky, our economy is certainly based around small business entrepreneurs. According to the latest SBA.gov statistics for our state, nearly 97 percent of our employers are small businesses (20 employees or less), employing about 48 percent of people in private sector jobs.
But small businesses are also facing more complex external issues, per a press release from the National Federation of Independent Business. There’s a growing business concern about increased tax complexity, renewed regulations, rising insurance costs, energy costs and overall uncertainty about the US economy. How small business owners grapple with these issues will likely be the story for the remainder of the year and into 2014
Assessing a Business
If your small business is mired in a distinct lack of sales and growth, you may need to reassess the value for your business assets. Maybe your business needs upgraded industrial equipment and it’s time to assess your existing capital requirements? Or, when was the last time you looked at your company’s various insurances? Knowing the right kinds of insurance your business needs for property, autos and trucks, liability coverage, income protection and other items can be a great step in assessing your overall operation.
Small business owners should analyze every facet of operation and determine insurance needs and amounts. It’s wise to bring in outsiders to conduct a risk analysis of your business. Most outside insurance consultants offer a cost-free analysis, so feel free to get a few estimates. Most growing small businesses will likely need to look at the following areas, so use this checklist as an insurance appraisal guide.
Business owner(s): This type of coverage can offer protection to a business owner or owners from fire, water damage or other accidents occurred while on business owners’ property. Having this coverage also gives business owners some facet of liability protection.
Business property: This is additional coverage for physical property owned by a business owner. This type of insurance usually covers the structure that houses the business, plus coverage for inside equipment, inventory and other physical assets.
Auto property: If your sales team uses a fleet of business owned cars and trucks, your automobiles will definitely need collision or liability coverage for your team. Companies such as State Farm car insurance can provide accurate quotes for your vehicle fleet.
Overall liability: Coverage for overall liability is essential to small business owners. This coverage can protect your business from scenarios like customers having accidents in your retail environment to an equipment failure that damages a customer’s process.
Product liability: If your small business sells products that can potentially cause harm or injury to a customer, this is the insurance coverage to have. Instances of application may occur with food products’ makers, small companies producing semi-dangerous goods and other equipment makers.
Malpractice insurance: If your small business provides a health-related service, you need to be protected from future liability. An example here is of doctors and other practicing physicians, who are required to have this type of coverage.
Income insurance: This coverage ensures that your small business will gain income in the event that your small business is somehow damaged (from weather, accident or crime), and temporarily halts or closes your operation.
Also, check The Small Business Administration for a fresh look at tax information for small business – perhaps there’s an area that your company can take advantage of with tax credits.