The value of reassurance: How much insurance does your company need?
When it comes to insurance, it always seems like it's too expensive, until you've had a loss and need to make a claim. But how much insurance is enough to cover your needs and how much is too much to afford? It's an easy, but potentially costly, mistake to make in either direction.
Here's a quick look at the process you'll need to determine the total insurance your company needs to cover loss of equipment, standby of operations during an emergency or liability in case of a lawsuit.
Liability: Liability insurance covers you if you are sued, such as when you send a technician out into the field and they accidentally cross-wire an HVAC unit, which creates an electrical short and causes damage to the home's electronics, including a computer and television. Liability insurance helps cover the cost of this damage.
Employees: If your company has employees, you have worker's compensation, to cover expenses if they are injured on the job, and unemployment, which provides income if they lose their job through no fault of their own. Full-time employees also require healthcare insurance.
Income: If your business is shut down due to a disaster, how will you continue to bring in the money to remain in operation? Income insurance covers potential loss of income, such as may happen when your computer lab is flooded and requires weeks of data recovery and loss of work.
Property: When your property is damaged by a flood or fire, property insurance covers the cost of that equipment, materials, products or office furniture, as a few examples. It covers the assets that you lose in the process, such as the machinery in the aforementioned computer lab flood.
When it comes to figuring out how much insurance is enough for your business needs, the process can be fairly simple. But what if you're not quite sure exactly how much you need or what aspects of your business should be covered? At AccountRely, we can help you find the answers you need. Please feel free to reach out today to talk to one of our business strategy professionals and discover the difference AccountRely can make for your business now.