Insurance For Small Businesses: Prudent Management Of Risk

As a litigation lawyer, I regularly see businesses facing serious financial exposures whether it be the result of a devastating fire loss, a significant errors and omissions claim, or as a victim of fraudulent activity by a trusted employee. One of my first inquiries is with respect to the availability of insurance coverage to respond to the claim. Insurance not only provides potential indemnification for the loss, but also can provide coverage for the legal defence costs of associated claims brought against the business. In my experience, many small business operators have very little knowledge of their insurance coverage and unfortunately, in many cases they are significantly underinsured. It is part of the prudent management of risk for small business owners to review their insurance policies and obtain advice from a knowledgeable insurance broker, risk management specialist or lawyer. The only way to know what insurance is required for a business is to look at the