Risk management
A solid insurance plan is essential in handling risks

Trying to succeed in business is a risky venture in its own right, but there are many hazards a business owner needs to watch for in daily operations. All businesses need protection against legal claims, accidents and natural disasters, along with the risks specific to certain industries. A solid insurance plan is the essential tool to managing those risks. The key person to turn to for help is an insurance agent experienced at assessing your business risks and needs. There are many different types of insurance plans to consider.

Liability insurance
All businesses in Virginia are subject to laws governing negligence. The courts view negligence as your failure to exercise a reasonable degree of care that might be expected or required under any given circumstance. Liability insurance provides essential coverage claims by your customers, your vendors and other groups who come in contact with you in the course of doing business. Liability insurance also protects you against claims made by a party who is on your property, such as a repair person, a delivery person, or a messenger.

Liability policies are third-party coverages protecting your business against claims from an outside party. Coverage generally includes:

• Legal costs associated with defending a claim of negligence,

• Payments you are required to pay related to accidental bodily injury or property damage that you cause,

• Medical services or payments you are legally obligated to pay related to the claim or accident, and

• The cost of judgments during an appeal.

In addition, if you or your employees operate a company vehicle during the course of business you will also need automotive liability coverage. If your company makes a product, product liability coverage is essential for any product you manufacture or resell that may cause injury or damage to the user. If you're in a service business, you will want to pay close attention to the "professional liability" exclusions in the general liability policy because some services are excluded, and you may need a professional liability policy or errors and omissions program.

Life and health insurance
Depending on the size of your business, you may offer employee benefits including life, disability or health insurance. These programs bring with them a unique set of challenges and decisions. Life insurance can also play a major role in providing for the company in the event of the death of a principal or partner.

Property insurance
You must protect your business property as well as the contents, and property insurance provides that coverage. The buildings, office furniture, computer equipment and your inventory are all items that you could not afford to lose and should be protected. There are many forms of property insurance, covering areas such as theft, business interruption, vandalism and natural disasters such as fires or floods.

Special-purpose insurance
There are many other types of insurance policies depending on the type or nature of your business. These would include boiler and machinery insurance, credit insurance, fidelity insurance, key employee insurance and surety bonds.

Workers' Compensation Insurance
Virginia law requires all employers with three or more employees to provide worker's compensation coverage for accidents and occupational diseases. The cost of this insurance varies by industry and occupation. For more information, log on to the Virginia Workers' Compensation Commission Web site.

Shopping for insurance
When selecting an insurance broker in today's marketplace, the best way to ensure optimum results is to unbundle the buying process. That means separating the broker/agent decision from the insurance company decision. This gives you the freedom and flexibility to choose the best possible broker and the best possible insurer for your needs. The first step is choosing the broker/agent and the second is picking the appropriate benefit plan.