How to Protect Your Business Income

The unpredictable world of business can include many twists and turns that may derail your company’s goals and operations. Accidents and other unexpected incidents may be inevitable regardless of experience levels or attention to detail. Issues affecting your business’s income may be particularly problematic, as an unanticipated reduction in could have substantial and far-reaching ramifications.

Fortunately, there are steps you can take to limit the possibility of incidents having an adverse effect on your business’s income. By planning ahead and laying the groundwork now, you can position your company to better manage and recover from such hardships, potentially minimizing losses and recovery time.

Key Strategies for Protecting Business Income

Securing your business’s financial interests and establishing the means to endure reduced income typically requires a multistep process. Consider the following strategies:

• Assess risks. Understanding potential threats is one of the first steps any business must take when seeking to mitigate risks and limit future losses. Consider various factors, such as your location, which could impact the likelihood of crime or natural disasters impacting your business. Additionally, the industry in which you operate can provide a helpful indication of potential exposures. For example, manufacturing companies may need to account for supply chain delays.
• Consider assets. Your business may have many types of assets, including its employees, physical belongings and intellectual property. Being prepared to manage incidents involving any of the aforementioned assets can make all the difference when minimizing resulting financial consequences. Identify equipment, systems and key employees that must be covered by adequate insurance to limit losses arising from incidents that affect them.
• Acquire insurance. Once you’ve identified your risks and gauged your assets, you should seek assistance from a qualified insurance agency, such as Freeman Insurance Services, Inc.. The right professionals can play a crucial role in helping you explore coverage options, identify possible solutions and secure policies at ideal rates. Business interruption insurance, also known as business income insurance, may be of the utmost importance as you prepare for these potential issues.
• Establish plans. Although having insurance can provide financial support and peace of mind, your business should still take steps to mitigate the long-term consequences of its income being disrupted. These losses can often be reduced by having formal plans and processes in place prior to incidents occurring. Create a list of customers, suppliers, stakeholders and other parties that would need to be involved or informed regarding such situations. Assign roles to key employees and ensure everyone is aware of their responsibilities.

We’re Here to Help

At Freeman Insurance Services, Inc., we’ve served businesses in Albany, CA, and throughout the Bay Area for nearly 20 years. Our dedicated team will draw on this extensive knowledge and experience to assist you in ensuring your business’s income is adequately covered. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.