This story appears in the
February 2004 issue of
Entrepreneur.
Subscribe »
Getting insurance for your business and business property has
never really been an easy undertaking, and it's still one of
the most important start-up tasks you'll face. Due to the
aftermath of 9/11 and the continuing slow economy, it's also
gotten more expensive.
According to Gary W. Eberhart, former executive vice president
of the National
Association of Professional Insurance Agents, "Some of the
policy provisions, some of the coverage that every business used to
have, may or may not be available anymore." Generally, you can
expect higher premiums, higher deductibles and leaner coverage. And
if you're in a high-profile building, such as a landmark or a
city center, you won't be likely to get terrorism
insurance.
It's not all bad news, though. As Eberhart notes, insurance
coverage moves in business cycles-the marketplace and the cycle are
down right now, but when the economy shoots up, you can expect
property and casualty insurance to rebound in a similar fashion.
Until then, Eberhart advises start-ups to plan on getting insurance
coverage very early in your business plan, secure a trusted
insurance agent who can also act as a business advisor, and be very
honest with your agent about your business needs to get the most
targeted coverage.
"The thing that so many small businesses fail to do is to
buy coverage for loss of income due to business interruption,"
says Eberhart. "You can have fire insurance and liability
insurance, but if the building burns down, those six months that
you're not in business, you're going to need some
income."