Insurance policies are often thought of as things that are never necessary until you don't have it. Whether or not this is true, it is not a healthy mindset for small to medium-sized business owners to have. Comprehensive coverage should be part of the process when designing an organization's plans. Otherwise, it could be difficult - if not impossible - to recover from unforeseen events.
This blog has previously discussed the long and arduous process many East Coast businesses have had to endure after Hurricane Sandy. USA Today reported on lawmakers meeting in a roundtable discussion on Thursday. The Senate Small Business and Entrepreneurship Committee wanted to talk in-depth about a bill it proposed last month to make it easier for some small businesses to get federal aid after a disaster.
Louisiana senator Mary Landrieu said that small businesses are critical to the overall economic recovery, and therefore deserve the fastest and best help possible. One new measure would change requirements, so borrowers wouldn't have to use their personal homes as collateral for business loans of less than $200,000.
According to David Muhlhausen, a research fellow at the Heritage Foundation, such measures are not going to go far enough in reducing the costs of future disaster policies.
"Given the increasing financial stress facing the federal government, reform should be focused on preventive measures that limit the costs of disaster recovery,'' he told lawmakers at Thursday's roundtable.
Muhlhausen added that Congress has to focus on better preparation measures for natural disasters and with the federal government supplying so much aid, state and local ruling bodies are less inclined to respond or solve problems.
Even if more federal assistance is given to help small businesses recover, it is necessary for their leaders to take some measures into their own hands. Working with commercial insurance specialists can help owners find the best policies that account for daily operations as well as natural disasters.