When you lease an embroidery machine or any other piece of equipment for your business, the leasing company usually requires that you purchase insurance for that equipment. Many embroiderers believe that coverage for machines is all the insurance they need, but every embroidery business consists of far more than just equipment. If you suffered a fire or theft, you’d need to replace more than just your machines. The loss of supplies, finished goods or even computer software can deal a severe blow to your business. To protect your assets and your income, it’s important to think beyond your equipment.

Make a List

The best way to know what you have to insure is to make a list of everything you have that is part of your business: your supplies, furniture, office equipment, software and dongles, and everything else you use in your work. (For help with this, you can download a free form at www.mckayins.com.) Even if you work out of your own home, insurers consider these items to be business related, and they are probably not covered under your homeowner’s policy. Record the year you bought each item on your list and the amount you paid for it.

Add to your list the value of finished goods you could have on your premises. Give the maximum value of finished goods you’ve had at any time in the past year. Also record the value of items that you have on your premises but do not belong to your business. For example, if your business embroiders a logo on leather jackets for the local flying club, record the value of those jackets, even if they are the club’s property. If they were damaged in a fire, you’d face a large bill to replace them.

Protection Where You Need It

Your business could also be in jeopardy if you or an employee were to cause harm to someone in the course of your work. This is especially important if you pick up and deliver orders. Anyone hurt in a traffic accident where you or your employees are involved could sue your business. Talk with your insurance agent about liability coverage so that a simple accident – like spilling hot tea on someone – does not put your business at risk.

Fire or theft can put a temporary halt to your business – and to your income. It’s a good idea to be sure your insurance policy includes business interruption coverage. That way, if you experience a fire or theft, you are not just covered for the damage to your equipment and supplies, but you may also have a claim for the income that you would have had, based on the previous year’s records or other proof of business lost.

Insurance coverage for your valuable machines is essential – but there’s so much more to your business than equipment. To make sure your business can survive an unexpected setback, take a careful look at what you really have to insure.

About Patricia McKay

Patricia McKay is the owner of McKay Insurance Agency, Inc., one of the few agencies in the U.S. that focus on the embroidery industry. For more information, visit www.mckayins.com.

With over 20 years in the business insurance industry, the past 10 years specializing in the Decorated Sportswear industry, McKay Insurance Agency, Inc. insure hundreds of embroiderers and screen printers, many in home, on the road and also many larger. Start-up businesses have been their focus as they need more information and assistance to be able to insure their businesses, than more experienced entrepreneurs.

McKay Insurance Agency, Inc
Tel: 800 625 2902 (800mckay02)
Fax: 330 630 2733
www.mckayins.com