How to Insure Your Promotional Business Items

Without proper insurance, a promotional business may find its items -- and future -- engulfed in flames.

Housing many expensive pieces of equipment, a promotional business has unique security and insurance needs. Other businesses may be able to get by on a policy which covers all of their assets in a consolidated approach, but with big-budget printers and screening equipment to consider, an itemized equipment policy might be a better choice for promotional businesses.

Things You'll Need

• Computer
• Internet
• Phone

Instructions

1. Make a list of all equipment to be insured. Take the time to look up and record serial numbers. Determine the condition of the equipment as "Good, Slightly Used, Used or Poor." Keep this list available as it will be needed during the interview with potential insurers in Step 4.

2. Take pictures of all identified equipment and create asset files. Pictures display the condition of the equipment, show serial numbers in case the items are stolen, and provide evidence of ownership. Pictures will prove useful in the unfortunate case of fire, theft or other catastrophe.

3. Walk around the business area and determine potential hazards. Consider the condition of the building, electrical wiring, age of plumbing and historic flood tendencies. Locate the nearest fire station and determine how close the nearest fire hydrants are.

4. Contact and compare business insurance providers and their policies. Provide the itemized list of your equipment and details about the building. Inquire about the impact depreciation value has on rates, and whether or not itemized value insurance -- insurance that covers individual pieces of equipment -- is provided.

   When comparing providers, consider the deductible -- the amount paid by the insured to replace or repair a damaged piece of equipment. The higher the deductible, the lower the premium.

5. Take the time to build a relationship when choosing an insurance provider. Your provider needs to understand the promotional business and items associated with its operation. A serious provider will take the time to propose several options. Keep in mind that the least expensive provider is not always the best provider. Ask for and check references before signing any policy.

6. 

Tips & Warnings

• Consider setting up a savings account for the policy deductible. This will prevent a financial hardship when needing to replace a damaged or destroyed piece of equipment.

References

• Protecting Your Business from Disaster and Emergency
• How Business Inventory Insurance Can Protect You
• Promotional Products