Is It Necessary to Get Insurance If Your Business Has No Inventory?

Is It Necessary to Get Insurance If Your Business Has No Inventory?

Astoria business owners rely on insurance to help protect their investments. However, the amount of coverage you need depends on the type of business that you have. If you have a small business without a lot of inventory, you may not believe that you need full coverage.

Even if you have a small business, it’s important to take inventory of your items. Every business has valuable assets. Think about your physical office building, or maybe you have a home office that you use as part of your business. Think about how valuable your computer or tablet is to operate your business, and how losing such objects would negatively impact your operations. If you don’t have a detailed record of your business’s assets, you will not be prepared if an emergency happens. That’s why having commercial property insurance is important.

Why Insurance Matters?

Business insurance protects your inventory if it is lost, stolen, or damaged. Commercial insurance protects your property against possible damage from hail, fires, and other disasters. Liability coverage is another significant part of the policy. If someone gets injured on your property or alleges that your products made them ill, you may be at risk of a lawsuit. Liability coverage can help cover the costs of the lawsuit and any negligence by your employees on behalf of the business. The coverage offered by such a policy can prevent you from losing everything and having to completely start over in the case of an accident or natural disaster.

You’ve likely invested thousands of dollars into the tools and equipment you need to operate your business. If these necessary items were damaged, commercial insurance helps ensure that your business will continue to function properly.

The policy also covers any additional property that you own. Any extra buildings, storefronts, and facilities that are a part of your business are covered if they are damaged or vandalized. Without coverage, you’ll be forced to cover any damages out of your pocket. That can cause serious financial strain on your business. In severe cases, you may even be forced to close your business while your issues are resolved.

Tips to Prepare an Inventory Checklist Before Filing a Claim

Here are some tips to help you prepare an inventory checklist in case you need to file a claim.

● Take Inventory

Taking inventory isn’t too complicated. Taking inventory involves organizing a detailed list of the physical assets that your business needs to operate. List all of your fixtures, furniture, appliances, and tools. You have to be thorough. Do not overlook things such as routers and signage that are important to the success of your business. Go over every part of your business and take pictures. You should also write down serial numbers, product descriptions, purchase dates, and projected future values. You can document everything by writing notes, using a spreadsheet, or using an inventory app.

● Stay Organized

Compose a list of the inventory in your office, kitchen, and other places around your property. That will make it easier for you to update your inventory. Be sure to double-check everything. You may not envision your fax machine or printer as being significant but imagine if something were to happen to those items and your business was unable to function properly.

● Make Copies

Upload all of your photos and notes to cloud storage and back them up on a flash drive. Make copies of any written notes that you have, as well as an electronic copy. Store all of your copies in a safe location that you’ll be able to reach in the event of a disaster, such as a safe or lockbox. Always save your receipts for any business items that you purchase. This shows that you have proof of the item’s true value. Staying organized also assists you when it is time to file your taxes. It will be much easier to qualify for small deductions.

Business Insurance in Astoria will help protect your business during difficult times. Remember to amend your policies as your business evolves. It’s important to add or subtract coverage as things change. If you have any questions about your business insurance, contact the experts here at 01 Insurance today.