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Weak links can cost you big--make sure your suppliers are covered.

This story appears in the February 2000 issue of Entrepreneur. Subscribe »

If you think buying business insurance is a decision best made by the business's owner, you're right--to a point. But when that company is your supplier, you just might want to have input on what type of coverage it has.

Generally, you should be concerned with the company's property insurance, which covers your interest in tangible property, and liability coverage, which protects you in case of a lawsuit, says Craig S. Simon, a managing partner with Berger, Kahn, Shafton, Moss, Figler, Simon & Gladstone, a law firm in Irvine, California. You can use your position as a customer to insist that your suppliers provide you with peace of mind through certain types of insurance coverage.

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