If you own a business, only you are in a position to decide what kind of insurance coverage you would like to carry and how much. You would have to strike a balance between how much protection you would like against possible losses and what you would be prepared to pay for out of your own pocket. For instance, in situations where the probable loss does not justify the insurance premium, you are better off as a self insurer.

The first step is to make a list of the areas in which you would like protection against losses. Some things that you might wish to consider are:

-your equipment such as your computers and your faxes

-inventories of raw material, finished goods and spares

-buildings and the furniture and fixtures inside

-company owned cars and vehicles

If your business is home-based, take a good look at your homeowner’s policy. It is likely that some of the items such as computers are already covered or can be covered for an additional modest cost.

In addition, you would be wise to consider liability insurance. Liability insurance comes in the following forms:

General liability: this is designed to cover the liabilities that may arise out of the business premises or the goods and services being sold.

Employers’ liability: you are covered for hours of work, discrepancies in wages and work related accidents.

Automotive liability: this is applicable to cars or vehicles driven by employees in the course of their duties. Coverage includes accident damage to the employee, injuries to employees and liabilities to third parties as a result of accident.

You would be well advised to consult a good insurance agent about your insurance requirements. He will get you the best possible coverage at the most affordable rates.