Insuring Your Small Business’s Future

FINANCIAL FITNESS SEPTEMBER 2014

Reprinted by permission of the St. Louis Small Business Monthly

Insurance is crucial for all businesses, but some don’t realize how important it is until after a disaster. While most

business insurance policies will cover and/or replace stolen or damaged property, many do not account for income lost if your business is forced to shut down temporarily. If you are a small-business owner, minimizing business risk is key for you to be financially successful.

Recent events in St. Louis have brought to light the importance of tailoring policies for your business’s needs, including insurance you might not have considered. Here are some tips to follow when looking for an insurance policy:

• Figure out what you need. Chances are you won’t need some of the coverage that larger businesses require. Be sure you go through your policy and ensure that it provides the appropriate amount of coverage for your size and type of business.

• Don’t be satisfied with “package policies.” Many insurance companies will

group their policies based on what they believe you need. These packages can be altered and redesigned to specifically suit your company.

• Make sure all paperwork is filed accordingly. Filing a claim can be overwhelming, as losses can be challenging to estimate, especially when you factor in business interruption. Your best bet to a swift resolution is to file the proper paperwork and consult your CPA firm for an independent review of the claim.

• When in doubt, ask for help. If you aren’t sure what type of coverage you need or if you’re being talked into an unnecessary policy, it never hurts to ask an outside professional to review your policy and help you mold it to fit your business. n

Karen Stern (314-983-1204 or kstern@bswllc.com) is partner in charge of BSW Small Business Services, which provides small business tax and accounting services.

BY KAREN STERN