Needs To Know Before choosing just any insurance package, analyze your needs.

Despite the proliferation of "package policies,"insurance is not a one-size-fits-all issue. You need to understandwhat your risks are, how much liability you can handle, and whatyou need to cover.

Some issues to consider:

• Do you own or lease your property? As an owner, you'reresponsible for the building and its contents. As a renter, youneed to cover your equipment, supplies and inventory.

• Is your work performed solely in your office or plant , or doyou routinely travel with equipment and inventory, or workoff-site?

• What is the likelihood that your product could cause injury ordamage? To what degree?

• Have you made provisions in case you suddenly die or becomedisabled?

• Do you have employees who work from their own homes or takeequipment or materials home with them?

• Are there other businesses you depend on but have no financialinterest or control in?

• Does your company own vehicles, or do you use your personal carin the course of business?

• What types of personal insurance, such as medical, disabilityand life, do your employees need?

• How important is insurance to your ability to offer acompetitive compensation and benefits package in order to attractand retain high-quality employees?

The Game Of Risk

Are you ready to play?

Big corporations have entire departments dedicated to riskmanagement--a luxury most small companies can't afford. Butthat doesn't mean you can't take an objective look at yourrisks and work to reduce or eliminate them.

Begin by walking through your facility with a fresh, objectiveeye. Are hallways full of items that should be properly storedelsewhere? Are all chemicals--even ones like cleaning supplies ortoner--stored safely? Are exits clearly marked? Do you have asecurity system, smoke alarms and sprinklers, and are they checkedregularly? Is your parking lot clean, well-marked and well-lighted? Are workers following the appropriate safety proceduresfor their jobs?

Once you've done your best to reduce or eliminate riskysituations, develop a disaster plan. Decide in advance howyou'll communicate with employees, customers and vendors ifyour facility is either damaged to the point it is unusable orinaccessible for any reason. Duplicate critical data--particularlycustomer files and accounts receivable information--and store itoff-site.

Check with your insurance agent or primary liability carrier forassistance in developing a risk assessment and managementprogram.

Healthcare Benefits

In a recent study by Dun & Bradstreet, 39 percent ofsmall-business owners reported providing health-care benefits totheir employees. This is a 7 percent decline from 1996 numbers.

Woman business owners are the only group that increased healthinsurance offerings in 1997.

Next Step

• Insurance Information Institute
  110 William St., New York, NY 10038
  (800) 331-9146 (publications), http://www.iii.org

• Independent Insurance Agents of America
  127 S. Peyton St., Alexandria, VA 22314
  (800) 221-7917, http://www.iiaa.org