Needs To Know

Despite the proliferation of "package policies," insurance is not a one-size-fits-all issue. You need to understand what your risks are, how much liability you can handle, and what you need to cover.

Some issues to consider:

• Do you own or lease your property? As an owner, you're responsible for the building and its contents. As a renter, you need to cover your equipment, supplies and inventory.

• Is your work performed solely in your office or plant , or do you routinely travel with equipment and inventory, or work off-site?

• What is the likelihood that your product could cause injury or damage? To what degree?

• Have you made provisions in case you suddenly die or become disabled?

• Do you have employees who work from their own homes or take equipment or materials home with them?

• Are there other businesses you depend on but have no financial interest or control in?

• Does your company own vehicles, or do you use your personal car in the course of business?

• What types of personal insurance, such as medical, disability and life, do your employees need?

• How important is insurance to your ability to offer a competitive compensation and benefits package in order to attract and retain high-quality employees?

This article was originally published in the January 1999 print edition of Entrepreneur with the headline: Needs To Know.