As the economy rebounds and signs of green shoots in business building abound, here are three areas to consider for business insurance success. It’s a new local landscape for many in the fascinating and frustrating world of insurance and risk management. Here are a few ways you can “improve your groove” in 2014 as a new or redirecting business in Monmouth and Ocean county.
Our coastal community businesses know first hand the affects of extensive 2012 Sandy damage. What many owners continue to grabble with when starting a business is the impact “Territory” will have on their business insurance success. Windstorm is a huge predictor of property damage in our coastal counties so understanding underwriting guidelines and pricing tiers in these locations is paramount to coverage placement success. Of course businessowners can expect to pay more for property insurance close to the shore, but many still fail to understand the coverage limitations, coverage availability challenges and the intricacies of the application process required to effectuate an insurance program. The second T is taking the “Time” to complete the new business insurance process thoughtfully. It’s in a client’s best interest to engage by requesting the “best coverage” to start the conversation and then adjusting the plan as budgetary restrictions dictate with a full understanding of coverage give-backs. Rushing through the process of designing a business insurance program to chase “the best price” is always a losing proposition. So before the lease is signed or the building and inventory are purchased, take the “Time” to consult with an insurance professional that can guide you on starting or growing your business in a “Territory” that may be challenging.
Many business owners are surprised to learn that 75% of households and businesses are located in a federally designated flood hazard area withOUT any flood insurance. Flood continues to be the most common natural disaster in the United States which makes everyone at risk for a flood loss. The technical definition of a flood is the general or temporary condition of partial or complete inundation of two or more acres of normally dry land or two or more properties(with at least one of those properties being yours for coverage to apply). The cause of flood loss can be from ANY source including the overflow of inland or tidal waters, unusual runoff of surface waters, mudflow or a broken water pipe, a blocked storm drain or collapse of land due to erosion. The important lesson for business insurance success is to assess and price flood coverage to protect the exposure to loss wherever the business is located!
The last but arguably the most important “T” for teflon in developing business insurance success is aligning with “Talent”. A seasoned and active professional advisor can provide you with coverage options and a knowingness around changes that are always in play in the industry. A great agent will be able to offer you a wide variety of coverage and a quiet confidence in sharing industry insights that the internet will never be able to impart in a nanosecond. Good luck!
About the author
DonnaLyn Giegerich MBA CIC is a twenty five year insurance planning professional for two independent insurance agencies in Red Bank. She is a motivational leadership trainer, donnalyn.org, adjunct professor of Economics and “insurance pro” for the Small Business Development Center at Brookdale Community College.
Contact the ASBDC office to schedule an appointment with an expert to help you take your business to the next level.