Title: (Optional) Determine insurance coverage needs and the steps in securing insurance coverage.
Course: Entrepreneurship, Advanced (12053-II) > Section: Understanding Small-Business Management Concepts

Determination should include

- identifying types of insurance related to doing business (e.g., product liability insurance, key person insurance, errors-and-omissions) and others that are related to employees (e.g., Federal Insurance Contributions Act [FICA], workers' compensation, life, health, accident, disability)
- estimating cost for type(s) of insurance, based on research
- locating an insurance carrier
- evaluating policies.

Process/Skill Questions:

- What types of insurance are mandatory for companies with employees?
- Why is it important to understand some of the insurance needs of one's business before talking with an insurance agent?
- Why is it important to take care in selecting the right insurance carrier?
- What are some of the risks associated with retailing businesses? Manufacturing businesses? Construction businesses?
- What are the characteristics of an effective insurance agent?
- How can a business owner determine the proper amount of insurance coverage for the business?
- How do changes in insurance coverage affect the financial status of the business?
- What is the importance of continually evaluating one's policy?
- What resources does the National Federation of Independent Business (NFIB) provide for small business owners?