Insuring Success.

• Author: Campbell, Carolyn

10 Ways to Help Determine Insurance Needs for Small Businesses

As the owner of Distinctive Image, a Salt Lake City custom picture-framing business, Tracey Jones finds himself working with materials ranging from World War I documents to christening dresses to Chinese etchings. He offers hand carved mattes, an on-site consulting service and pick up and delivery. Because he transports clients' property, Jones insures his van as a business vehicle and is the sole driver. He also insures the contents of his van so they are covered in case of an accident.

Salt Laker Carol Louder is the originator and owner of Macabi Skirts. A former Peace Corps volunteer in Tunisia, Africa, she was fishing in Mexico when she conceived the idea for her current business. Designed for adventure travel, the versatile Macabi skirt converts to a long skirt, short skirt, pants or shorts with the simple adjustment of clips and snaps. With more and more women enjoying exotic travel, the skirt's market is steadily increasing. To help insure the success of her business, Louder purchased business liability insurance for her building and inventory.

Julie Smith's business dream came true when she opened her 2,000 square foot retail store, The Vintage Vagabond, in Holladay two years ago. The store features home accessories such as quilts, linens and dishes, gifts, and custom furniture. To safeguard her business investment, Smith purchased a $1 million liability policy -- "in case a customer fell or was injured." She also bought property coverage to insure her inventory against theft or fire, and loss-of-income insurance, so that she would have funds to rebuild her business should the building burn or be destroyed. She also bought liability coverage for her inventory.

In building their small businesses, Jones, Smith and Louder realized that insuring against the appropriate risks could save their firms from bankruptcy.

An account executive at Grant-Hatch & Associates, a Certified Insurance Counselor (CIC), and a volunteer instructor for the Small Business Administration, L. Kay Howland helps small business owners determine their insurance needs. He offers the following suggestions to small business owners and start-ups on how to determine insurance needs.

1. Seek business personal property and business liability coverage first.

   When beginning a business, Howland suggests considering an initial insurance purchase to cover business personal property and general liability coverage...