Spring is finally here. The economy is slowly recovering. Put these two together, and it just might be the right time to go house hunting.

You have a great feeling when moving into a new house. There is an excitement in the air as you walk through the empty rooms, in anticipation of making this house a home – your home.

Many have an alarm system as a security measure, but with that often comes a sense of misplaced comfort. Though these systems reduce the time before the police and fire departments arrive – they don’t always prevent the fire or burglary from happening.

So, what else can you do to ensure you’re protected? Make sure you have sufficient insurance. Your insurance agent knows the value of your house because that information is on your mortgage. But what about the contents – the items that might be stolen or destroyed? Do you have high-end clothing, a lot of jewelry and/or collectibles? Are your furniture pieces high-dollar, name brand items? If so, you might not have enough insurance because the personal property coverage is based on a percentage of the house value. So, how do you know? Create a home inventory of all that you own.

You’re probably thinking, “But I have insurance, so why do I need to have this information?” If you have a burglary, fire or natural disaster, you will be required to list each item in your home, when you purchased it and what it cost before you can file an insurance claim. That’s a daunting task. Try it … grab a pencil and paper and list everything in your garage. Hand tools, power tools, lawn and garden equipment, toys, sports equipment, possibly even a compressor, power washer, ladders – the list goes on. Do you know the manufacturer and model numbers of the tools and lawn equipment? It’s overwhelming thinking of doing that for the entire house; can you imagine pulling this information together when under the stress and emotion caused by the situation that created the need to file a claim?

A record of all that you own (photographs and written report), prepared now, will help you remember and prove value. If you don’t want to create your own home inventory, contact a local service provider to complete the task for you. They will also help you identify items that should be appraised or covered on a rider. All of this will ensure you’re properly insured, and will be able to financially recover if you have a disaster.

Cindy Hartman
Hartman Inventory, LLC
317-501-6818
cindy@hartmaninventory.com

You must be vigilant and aggressive about defending your business. As the leader and captain of your business, you must have the foresight to develop a protection strategy preemptively… before you need it and before it’s too late.

You wouldn’t go rock climbing without safety gear (at least I hope not). Perhaps you wouldn’t go at all, under any circumstances, but if you did, you’d bring gloves, ropes, a harness, cams to secure yourself to the rock face and probably even a helmet. Of course, you’d want to make sure this safety gear was in great condition and working properly before you began the climb. And you wouldn’t go alone either. You’d have someone watching out for you. That just makes good sense. It’s wise, sane behavior. Why gamble with your life when it’s unnecessary? Why risk a crippling injury when there are tools to protect you and keep you safe?

I’m often surprised that people who take the recommended precautions in physical activities don’t bring the same logic to their financial activities. If you pay attention at all, you’re aware that, as a business owner, you face some degree of risk… more now than ever before. But I watch many intelligent, prudent, otherwise sane people taking enormous, irrational risks with their businesses.

To their credit, most don’t know they’re doing it. It’s not that they’re ignorant or foolish. Most of the hazards lay hidden from view. There are no flashing lights or loud speakers proclaiming their presence. And they’re not immediately obvious… until it’s too late. You can’t block the blow you didn’t see coming.

Let’s face it. A lot can go wrong

And just about anything can cost you your business – and your future – if you’re not prepared. What if a client suffers a large financial loss due to acting on your advice or because you missed an important deadline? What if you client’s private information (SSN, credit, finacials, etc.) is compromised?

There’s no shortage of potential disasters facing your business: fire, flood, theft, equipment breakdown, loss of key financial records, lawsuits from disgruntled or injured customers and even lawsuits from former or current employees.

You don’t need to be a millionaire to be sued like one.

You don’t even have to do anything wrong to be named in a lawsuit, and even if it’s bogus, you still have to pay to defend yourself in court. Good attorneys don’t come cheap. The important question is: If you find yourself faced with a hefty lawsuit, would you prefer to have your insurance pay for it, or would you rather just pay for it out of your own pocket? Would a $30,000 lawsuit put a strain on your business? What about $50,000? $100,000? $1 Million?

Home-based businesses are not exempt from risk

If you are a home-based business, you are just as susceptible to risk as other businesses, and you may think that all you need is a homeowners policy to protect you. A typical homeowners policy may provide a small amount of coverage for business property (typically $2,500 or less), but NO coverage exists for business liability. In fact, most homeowners policies specifically exclude business liabilities. Even if you don’t have any employees, and you only work part-time, you still face liability risks.

In a perfect world, you could focus all your attention on growing your business and not worry about the risks, but there are simply too many risks to ignore. You must address these risks head-on by developing a proactive risk management strategy that makes sense for your business and your budget.

Matt Hall
Merritt Hall Insurance
(317) 247-7737
mhall@merritthall.com