Preparing for the Unthinkable

Stop for just a moment to consider just how fragile life as you know it really is. All it takes is one small disturbance to knock your routine existence completely off kilter. I could fill pages and pages with a very long list of the many calamities that can strike you, your family, and/or your home-based business at any time. You may have advance warning for such incidents as hurricanes and wildfire or you may not. Earthquakes strike seemingly randomly with not a moment’s notice. The mere fact that you are alive to read this probably means that some disaster either has or will befall you with potentially serious consequences.

Under your current situation, what would happen if your home-based business was forced to shut down tomorrow? Do you have insurance to cover you against all of the most likely occurrences and some of the not-so-likely? If so, have you reviewed your coverage with a licensed professional (such as your broker) to make sure it’s more than adequate for your needs while you rebuild and recover? Will you be able to pay your bills, cover the direct and incidental costs of coping with the problem, and rebuild or move your home-based business? If the answer is anything but a resounding “yes!” then you are in grave danger of losing all you have worked so hard to build.

Your business aside, what about you yourself? What would transpire if, God forbid, something happens to you? Do you have short- and long-term disability and income-replacement insurance? How about life insurance? Have you reviewed your coverage with a licensed professional (such as your broker) to make sure you and those around you are taken care of while you recover or after you’re done? If the answer is not a resounding “yes!” then… well, you know.

Insurance aside, have you taken all reasonable precautions to prevent or mitigate problems? This could be as easy as deicing the walk in front of your home before hosting a winter opportunity presentation or making sure to make regular bank deposits. What have you done to prevent or mitigate any liability you might have for people who get hurt at your home-based business events or other potential risks?

Admittedly, insurance and other mitigation measures are a gamble. By taking steps to protect yourself, your home-based business, and family, you are investing time and money on a bet that calamity will someday strike. Month after month, year after year, you pay your premiums and nothing happens besides a steady drip, drip, drip from your bottom line. Should nothing ever befall you, this will have been a totally wasted effort in some respects. But if something does happen… Would you rather be out the relatively small amounts you pay each month and be able to rebuild, or would you rather lose everything by being penny wise and pound foolish? A historic restaurant and lodge near Ashland, Oregon burned to the ground a few years ago. Thanks to solid disaster planning, they rebuilt and reopened within a few months, bigger and better than ever. Can you imagine the end results had the owners not made this investment, not only to them and their families but to the community in terms of jobs permanently lost, diminished tax base, etc?

I urge you in the strongest possible terms to take all reasonable measures to protect your home-based business and your loved ones against any calamity that could reasonably affect you or your business, especially if you don’t have such measures in place yet. If you’re fortunate enough to have protection, then make sure to review your measures at least annually to make sure that your coverage keeps up with your evolving needs.

I know I’m harping on this point; however, I’ve seen too many businesses (home-based and otherwise) following the “wing and a prayer” model, many of them owned by people who wouldn’t dream of not wearing a seat belt in a car. I like to think that you would never go anywhere sans seat belt- and neither should your home-based business.