It is no surprise that Entrepreneur magazine named Austin as “one of the nation’s most progressive and proactive entrepreneurial centers” in the nation. As individuals transform their ideas to reality through a business and operations expand, there are several points to consider from an insurance perspective.
First and foremost, it would be extremely wise to carefully review laws, regulations and especially contracts with your attorney and insurance advisor to make sure any insurance requirements are satisfied and your indemnity is protected. For example, a lending contract may require a $1 million minimum general liability policy. There may be other federal, local or industry requirements to consider, but the bottom line is to know what is required. Likewise, it is important to identify all of your risks and exposures to clearly understand what types of coverage you may need, in addition to what is required. For example, you may have a pollution exposure that you did not consider which can cost you dearly if you do not have the appropriate coverage. It is imperative to understand what other types of coverage are necessary to protect your assets, employees and/or business income. The final piece to consider is the amount of coverage you many need. In today’s litigious environment $1 million general liability limit would not go very far. Think back to the 1994 Mc Donald’s coffee case when a woman sued McDonald’s over the hot cup of coffee she spilled in her lap. This $2.86 million product liability lawsuit is a good reminder of why business’ need to understand what amount of insurance coverage is appropriate.
Much like your CPA and your lawyer, professionals are available to help design a risk management and insurance plan for your company. Your insurance and risk advisor can help identify what is required, what you need and what limits you should have to protect your business, but more importantly, challenge you to consider your business growth goals, identify risk and obstacles along the way, and develop a plan to help you achieve those goals. If you are expanding your operations and have questions about commercial insurance or employee benefits be sure to contact the insurance professionals at Texas Associates Insurors.