Tips on Insurance for Business Owners
Overlooking this item could leave you and your business pinching for pennies
Over the years, when asked for advice on starting a business, I would reply, "Make sure you are passionate about what you want to do," or I would try to find something profound and memorable to say. Now I know just how to reply.
After writing thousands of business policies and pouring over contracts for business owners, I have realized that the best advice on starting a business will come from an experienced insurance professional. Most prospective business owners have years of experience in their chosen field, or they will read and investigate the field that they are interested in and talk to business owners. The one item that most seem to overlook is the type of insurance that will be needed, or that will be required by their new landlord or a new project . The business owner may have insurance, but now they need to add coverage or increase limits.
Some items to be aware of:
Rental leases may ask that you be responsible for the insurance on the entire building; the value of the building could be $500,000. Did you budget for this?
You have an in-home office and because it is in your home you assume that your homeowners or rental policy will cover your needs. Then one day, you accept a project, and are asked to supply a certificate of insurance and are given a list of insurance requirements that look nothing like what you have.
You decide to lease a 2000 square-feet space because the price was at a discount, and you assume you'll grow into the space. However, your insurance policy is rated based on square feet.
Go over these questions and others with an insurance professional before signing any papers. It can make a big difference now, or down the road.
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Tagged as: minute mentor, women business owners, small business and minority business owners
is the President of W.A. George Insurance Agency Inc. Mercedes joined the company in 1998 as head of customer service, personally handling more than 700 client accounts. In that position, she was responsible for significantly expanding the company’s client base, product and service offerings, and sales. In 2003 Mercedes purchased the company from William George, becoming the President/CEO and 100% owner of W.A. George Insurance Agency. Immediately after taking control, the agency took on a more professional look, with a new marketing campaign that added several standard personal line companies, as well as standard commercial line companies. W. A. George Insurance Agency does work in both the private and public sectors. Some of the municipal and government-related work that W.A. George Insurance Agency has done includes the Water Reclamation District of Greater Chicago-Group Life 2003-2008; City of Chicago Department of Aviation in partnership with The Willis Group-General Liability 2009-2014; and Illinois State Board of Investments-Bond for $10 Million 2009-2011.
