Small Business Insurance

Develop a comprehensive plan While it can be tempting to plan one-at-a-time for risk reduction, you'll have a much more effective plan if you assess and prepare for all of your risks.

I recommend:  Check out the Institute of Risk Management for samples of risk-management plans and instructions on developing your own. Consider using risk-management software to determine risk priorities and probabilities. Examples of risk -management software include Methodware's Enterprise Risk Assessor, RiskTrak and Risk Wizard. Or work with a professional risk manager; find some at the Global Association of Risk Professionals (GARP) or the Professional Risk Managers Association.

Plan for natural disasters It doesn't take a catastrophe on the scale of Hurricane Katrina to put your business at risk. You can guard against 'acts of God' by putting a business continuity plan (BCP) in place. Consider a BCP a 'Plan B' — it spells out contingencies that will allow a company to continue operations if its facility is closed or employees cannot report to work.

I recommend:  The Disaster Recovery Planning Group offers templates, toolkits and a "BCP generator" to help you plan for natural disasters. The Disaster Recovery Guide lists a directory of business-continuity and disaster-recovery consultants. Consider sending backup tapes off-site weekly, or having a redundant server in a secure location if your business would fail if you lost data. Check out data storage specialists like Symagio, NetMass and SunGard Availability Services.

Insure against theft and property loss Property and equipment assets should be adequately insured. 'Blanket' coverage doesn't necessarily include all items, so check with your insurance provider.

I recommend:  The Hartford's Web site provides some excellent resources, including a checklist for reducing property risks. Free Advice features property insurance information, legal resources and answers to FAQs.

Protect your employees Proactively identify workplace safety issues and correct them.

I recommend:  WorkersCompensation.com provides information and resources to employers, employees and insurers. The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) offers free on-site consultations for small businesses about safety hazards in the workplace. You can also take a variety of free online training classes from the Public Entity Risk Institute (PERI). Find an ergonomist to evaluate your workplace at the Board of Certification in Professional Ergonomics (BCPE) or Ergoweb.

Data protection and security Technology and the Internet have introduced a host of new risks to business. Data loss or theft, computer viruses, hackers and privacy problems are just a few of the issues you need to address. You can beef up your technology security through software or by working with IT security consultants.

I recommend:  Find professional data security specialists at the International Association of Professional Security Consultants (IAPSC). Interpol has an extensive information technology security checklist.

Liability risks One of the most common business risks is general liability exposure, such as a customer getting injured on your business premises or an injury that results from a defective product. Some insurance brokers suggest 'commercial umbrella liability' insurance for protection beyond your primary commercial general liability (CGL) policy.

I recommend:  AllBusiness.com's checklist outlines key issues to review for a liability insurance policy. BusinessInsuranceNow provides a full overview of (CGL) general liability insurance and what it covers.