Wyoming Business Tips for Nov. 5-11

A weekly look at Wyoming business questions from the Wyoming Small Business Development Center (WSBDC) at the University of Wyoming.

By Arlene Soto, WSBDC Region 4 Director

"How do I know what insurance I need for my small business and where do I find it?" -- Lee, Rock Springs

Business insurance needs vary by industry, location of the business, inherent risks and what you can afford. It is more difficult for many small businesses to find coverage because of insurance industry changes.

First, find a business insurance agent in your community. If you don't know one, your personal insurance agent may be able to recommend someone.

Another option is to talk to other business owners for advice. An industry association or the local Small Business Development Center office also may have a referral list of insurance agents. Another resource is the Insurance Information Institute located at the Web site www.iii.org. They offer articles and resources for finding insurance coverage.

Once you find an insurance company, research their rating in the industry -- two companies provide this information -- A.M. Best at www.ambest.com and Standard and Poor's http://info.insure.com/ratings/index.html. Stronger insurance companies can usually provide better rates.

Finally, you need to negotiate a policy that works for you. An insurance agent can help review your potential risks and find ways to mitigate those risks, looking at coverage limits and deductibles and also various rates. Having no business insurance is not an option, but there is no policy that will completely cover all potential risks.

Finding the right insurance coverage will require shopping around and making decisions about what is needed to protect your business investment and assets.

The WSBDC is a partnership of the U.S. Small Business Administration, the Wyoming Business Council and the University of Wyoming. To ask a question call 1-800-348-5194, (307) 766-3505, e-mail wsbdc@uwyo.edu or write Dept. 3922, 1000 East University Ave., Laramie, WY 82071-3922. Additional help is available at the WSBDC Web page, www.uwyo.edu/sbdc.

Posted on Monday, October 30, 2006

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