Business insurance risks are faced by every type of business in every area. No matter if you operate an individual business as a single owner-operator or you run a large company, risks exist that could put your company at risk. The most important investment you can make in your business is to have adequate insurance protection against the risks you face.

Perhaps one of the most important decisions you can make as a business owner is deciding on the type of business insurance to have, the amount to carry and the amount you can afford. Most often, insurance agents can help you assess the risks associated with your business. They can do this before providing you with a quote for business insurance.

To determine the amount of risk and the types of risks most likely associated with your business, you and your agent should consider the following:

• Type of business and industry (industry information is used to define specific risks)
  
  
• Your business’ location (what locale trends or risks exist?)
  
  
• The type of building you operate in (how durable is it, where is it located and is it shared?)
  
  
• The local fire protection services (what is their reputation and how close are they?)
  
  
• The amount and type of insurance you've requested (adequate coverage limits to safeguard your company)

You have equipment, employees, inventory and a building to protect. You have risks associated with fire, hailstorms, vandalism, identity theft and worker injury. Your business could be at risk of cyber threats or it could be in need of added liability protection to safeguard against significant loss from a lawsuit.

Assessing the risks associated with any business means paying close attention to the specific functions, location and features of your company. Business insurance carriers tend to get a very close look at how you operate your business to help make this type of assessment. It's up to you to ask questions, inquire about various risk levels and to gauge your own level of safety from risks you've already encountered.