Identifying exposures is a vital first step to determining if your business is adequately protected. Until you know the scope of all possible losses, you won’t be able to develop a realistic, cost-effective strategy for dealing with them. Begin the process of identifying exposures by taking a close look at each of your business operations and asking yourself what could cause a loss. Three common losses are property losses (could but doesn’t have to include actual damage to your office); business interruption losses (your business operations interrupted due to a loss whether yours or someone else’s); and liability losses (lawsuits).
Keep in mind that property losses can include many things and not just direct property loss. Manufacturers might lose raw materials and finished goods, and merchants could lose valuable inventories and fixtures. Any business might lose valuable accounting records, making it difficult to bill or collect from customers. Vital machinery or equipment may become inoperable, and, if replacements can’t be found and installed immediately, the business may even be forced to temporarily shut down. Thus, look at the type of business you have, evaluate the type of loss you could suffer and decide how much insurance would be sufficient for your business. If you have any questions about the type and amount of insurance you have and whether it is enough, please do not hesitate contact our office.