Thoughts on Insurance Claims

I got a call the other day from a business owner who was going through a bad claim – a fire destroyed his business. He was not a happy guy. Insurance will not pay half of his total costs. He will probably never open his doors again.

The best loss is one that never happens. The second best loss is one that you took action to mitigate. The least best loss is the one where you bought insurance. The worse loss is the one where you don’t have enough insurance.

Protect your property. Install alarms, locks, and sturdy doors. Install a sprinkler system and have extinguishers on hand. Implement systems that eliminate the opportunity for an embezzlement against you. Install a video system to record what goes on when you are not around.

Buy insurance from a trusted agent and get an independent review of your insurance coverage. Build plans that can be executed if the worst happens.

Another tip, get my free white paper, The 20 Biggest Business Insurance Mistakes (pdf). Great info you can use to manage your insurance better. 40 Pages of insurance help including common insurance terms and info on how to understand your insurance policies. Just updated.