Did you hear the story about the wholesale Bakery that was on the 2nd floor? They didn’t have flood insurance, because they’re on the 2nd floor. Then the company above them had a pipe burst. Water flooded their space. While equipement wasn’t ruined, this violated the health code, and they not only had to sterilize all their equipment but get re-approved by a department of health notorious for getting to things in their own time. It took several weeks before the bakery could again produce food as a supplier. In the meantime, workers salary and other bills piled up. Thankfully, the bakery had business interruption insurance, and was able to draw down money until they were back in business.

My insurance agent told me this story to emphasize the importance of talking to an intelligent insurance agent. Someone who knows how you do business, where, why and what you do can help you be protected properly in case of emergencies. If you’re creating products and selling to customers, you’ll want to look into liability insurance. If you are working in a physical plant or location you own or lease, or you have equipment that is expensive, property insurance is relevant. Then there are your employees – you’ll want to look into workers compensation rules at a minimum. And of course, health insurance is important to many employers and employees.

Many insurance companies can work with you via the Internet or via phone, but it is worth going to visit an agent recommended by a business mentor or connection. The really good agents will, as the story above notes, know how to protect your business in a more complete way.

For further reference: A well written piece for Microsoft’s Small Business area about Insurance

The 4 basics of Business Insurance from About.com.

More about Liability Insurance.

We’d love to know your questions about insurance. Leave a comment below.