Is Your Business Protected from Insurable and Non-Insurable Risk?

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Is Your Business Protected from Insurable and Non-Insurable Risk?

When you started your business, I am willing to bet you didn’t take an insurance class.  

What are insurable risks and non-insurable risks? 

So, at this point, you have one of two choices, find a way to get educated or find out the hard way.  

As small business owners, we tend to learn a lot of on-the-job training.  It’s hard to trust those around us with our baby.  From employees to customers to vendors there are so many things we have to get “seasoned” at before we can avoid the common pitfalls.  If you have made it past some of the initial ones like hiring, training, sales, marketing, and operations you are doing well!  If you are successful in these areas, you move to actually making a profit and getting better year after year.  How much time do actually spend staying on top of your financials?  Have you ever taken the time to see what insurable risks and non-insurable risks you need to be protected from? 

 I’m going to flip the script a little bit, I am going to share a couple of questions on what Business Advisors should be asking business owners and the common answers they provide.  I will use Fortress Business Advisory as an example.

Insurable Risk Conversation #1

When you are ready to sell your business do you intend to sell to employees or managers? If the answer is yes then here you go....

FORTRESS: Mr./Ms. Business Owner, I bet your managers or key staff are really important to your business, right? BUSINESS OWNER: Yes, of course!
FORTRESS: Would you consider selling your business to any of them?
BUSINESS OWNER: It is an option I would be willing to explore along with an outside sale.
FORTRESS: Do you have an employee agreement or keyman policy in place?
FORTRESS: We would recommend putting an agreement/policy in place that protects you, your employees, and the buyer in the process of a sale. We have countless stories of owners who did not find this important when planning their exit and we would not want to risk negative implications for you and your business! Click on the question mark for a short video....

Insurable Risk Conversation #2

Do you have a life insurance policy? If the answer is yes when was the last time you reviewed it?....

BUSINESS OWNER: Yes, of course! I am not sure the last time I checked on it....
FORTRESS: It would be helpful if we could review your policy to make sure you have enough coverage, could save money, and what options you have when it's due to expire.
BUSINESS OWNER: Oh goodness, I just found out it expires this year, what do I do?
FORTRESS: Well it's a good thing we checked! Let's take a look and see how we can help you. Do you have any other policies that will expire that the business pays for?
BUSINESS OWNER: I would have to check with my office staff to see.
FORTRESS: Mr./Ms. Business Owner, we understand that running a business takes multiple people! We also understand that being a busy business owner does not usually yield the time to stay on top of items that only come around annually or even longer! This is why we are here to help you coordinate all of your risk protection in one place and take that responsibility on for you! Click on the question mark for a short video....

These are only 2 of the many countless insurable risks and non-insurable risks related questions you will come across as a business owner.

Are You Prepared?

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