Are you covered?

You are one of the nation’s 30 million+ small businesses (sba.gov). Of State Farm customers who own a small business, 40% have no small business insurance. Yet, the average covered claim a small business owner faces is over $22,000.

That’s a lot! Unwrap these eight holiday tips to keep your operation safe, secure and successful in 2019 and beyond:

1. Know what your policy covers.  If your business location is damaged by a covered loss, you’ll want the coverage necessary to repair/replace your building, business personal property, or both.
2. Watch your step!  Snow and ice can lead to slip and falls. With more people visiting your business, the risk goes up. Promote safety by maintaining adequate lighting around your property - - don’t let gutters and downspouts drain onto walkways or parking areas, and have a snow removal plan in place.
3. Make a list…and check it twice!  Use this checklist to periodically examine your property for potential hazards and unsafe conditions that may need attention.
4. Know your liability limits.  If someone gets hurt on your property, and you have a covered claim, your policy may respond up to the liability limits you have chosen.
5. Limit your theft exposure.  Hire honest people, and consider using a keycard system instead of a traditional key/lock. This gives insight into when and how your property was accessed. Also, install a good alarm system. If your insurance carrier is aware of this, you may be eligible for a reduced premium.
6. Do you have workers’ compensation?  Most states require that employers provide Workers’ Compensation for their employees in the event an employee is injured while performing their work.
7. Keep an inventory.  Businesses evolve and change over the years. Know what’s inside it. Did you purchase new office furniture? Get new computers? Buy upgraded phones? Make an inventory form. For example, if a fire destroys your business, the claim specialist will need to know what you had inside it. A current inventory form will save time and make the claim process more efficient.
8. Stay connected.  When you purchase new equipment or upgrade your business location, it’s a good idea to call your insurance agent to review your coverage needs. State Farm agents account for nearly 19,000 small business owners in the United States. Like you, they understand the importance of developing a plan for continued financial security. Regular check-ins ensure your coverage needs keep pace with your policy.

On the evening of June 9, 2015, veterinarian, Kenneth Kimbrough, wrapped up his last appointment, said goodbye to his staff, and went home.

“It was business as usual, until the fire department called. Kimbrough Animal Hospital was in flames.”

The doctor and his wife arrived on the scene to find their clinic fully engulfed.

“My biggest fear - the animals inside,” said Kimbrough. “I ran to the kennel. People were shouting, ‘It’s dangerous, don’t go in!’ But I couldn’t stop. I began taking animals out. Started administering CPR on the lawn. I had to get their lungs full of something besides smoke. I had to turn it around.”

Thirty-eight animals perished that night. Only two boxers survived. Officials deemed Kimbrough Animal Hospital a total loss.

“I shared this devastating reality with my clients and the community,” said Kimbrough. “It’s numbing.”

Rebuilding from the ashes

The next day Kimbrough called his State Farm Agent, Dave Powell.

“When I began working with Dr. Kimbrough in 2000, I looked him in the eye and said, ‘On your worst day, I’m going to be there for you.’ That day had arrived,” said Powell.

Together, the pair surveyed the scene, met with the claim specialist and reviewed his policy. While the cause of the fire was never determined, officials suspected it may have started electrically, in a back office.

“As a small business owner, it’s imperative to get back up and running,” Powell explained. “Dr. Kimbrough’s coverage included business interruption which meant State Farm would reimburse his loss of income, and also provides coverage to keep his team employed during the period of restoration. His policy also covered building contents, which allowed him to buy new equipment.”

With the help of State Farm, Kimbrough Animal Hospital began to recover. The old hospital was leveled and the rebuild began. With construction underway, Kimbrough converted his nearby pet grooming facility into a mini animal hospital. Portable buildings were moved onto the grounds so staff could help more people.

“Thank goodness for small business insurance, which made it possible,” said Kimbrough. “Dave, my agent, was with me every step of the way.”

A new chapter

In March 2017, the NEW Kimbrough Animal Hospital opened its doors.

“Our former building was 4,400 square feet. Our new facility is 12,000 square feet,” said Kimbrough. “This allows us to serve customers, provide daycare and grooming, and help more pets. We also have a Fear Free certified doctor on staff, which allows us better serve the physical and emotional wellbeing of animals.”

More than two years later, the clinic is back in action. And while Kimbrough says the memories of that fateful June night will never fade, he’s grateful for the support of his friends, neighbors and the Texas community.

“Thank goodness I could do this. With Dave as my State Farm agent, I had the right coverage, my needs were met and I was guided through the process. Kimbrough Animal Hospital got a second chance.”

“I consider it an honor to be a servant leader for our small business clientele,” said Powell. “Staying in touch to ensure the coverage they have continues to meet their evolving needs ensures people are secure. Helping, it’s what we do.”