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A successful company typically has many assets, and you understandably need to take all reasonable efforts to protect them. Everything from property damage to liability risks, theft and more can result in tremendous financial loss. In many cases, this loss may be mitigated with proper planning and forethought. While each company has unique assets, these are some of the more common ways for you to take responsibility for the protection of your company’s assets.
Regardless of the size of your business, you may have one work vehicle or a fleet of vehicles. Each vehicle is required to be properly insured according to state law. Special coverage requirements may be in place for the commercial-use of your vehicles or because of the type of vehicles that you own. For example, coverage requirements for a car used for employee transportation only are different than the requirements for a passenger bus. Auto lenders that have provided financing for your work vehicles also may have unique coverage requirements. While using a company car insurance program is essential to comply with legal and financing requirements, it can also decrease your exposure to liability risk related to car accidents and other situations involving your work vehicles.
Protecting your inventory is equally vital. Inventory may be stolen or damaged through vandalism, severe weather, fire and more. Multiple steps may be taken to protect this type of asset. For example, you may hire on-site security and invest in a stellar security system to deter crime. You may also need to insure your building and inventory through a robust and comprehensive policy. Even if you have some unique assets to consider, you may be able to find a specific policy for them. For example, just like a car fleet or home, you can get a specific insurance for your yacht. It never hurts to check if there is something like that for any industrial machines your business may own.
Your employees are a vital asset to your business. While they are not a physical asset, they each contribute to the profitability of your organization and may be difficult and costly to replace. More than that, personal injury to your employees could result in expenses as well as exposure to liability. Purchasing a workers’ compensation insurance policy as well as a general liability policy are important steps. You should also provide a safe workplace while ensuring that each employee has access to safety gear that may be essential for their unique responsibilities.
The loss of any of these assets can have expensive and even devastating consequences in some cases. Identifying all of the assets that your business owns or is responsible for is an important first step. Then, you can apply some of these tips to protect them, or you can look for other reasonable protection methods that may be specific to your unique business activities and needs.